LAS VEGAS May 18 Billionaire investor Daniel
Loeb said on Thursday that he is still making money even as the
hedge fund industry struggles.
Loeb, who oversees the $16 billion hedge fund firm Third
Point LLC, said there are ways to earn money on mergers and
acquisitions and by nudging company management to perform
better. Although not primarily known for corporate activism,
Third Point recently suggested to Honeywell International Inc
that the company spin off its aerospace unit, which has
been a drag on performance.
Loeb was speaking at the annual SkyBridge Capital hedge fund
conference, called SALT, in Las Vegas.
While journalists were not permitted to hear Loeb speak,
people familiar with his remarks told Reuters what he said.
A spokeswoman for Loeb confirmed the comments but declined
Third Point's main fund has gained 7.5 percent since
January, and its more aggressive fund is up 12 percent.
Last year marked a tough time for the hedge fund industry,
Loeb acknowledged, noting that some investors had stopped
putting money into hedge funds altogether and that his firm was
also hit with redemption requests.
At the start of 2016, Third Point oversaw some $17 billion
in assets, which shrunk to $15 billion during the year. This
year assets have climbed, to again stand at $16 billion.
Loeb was one of a handful of marquee hedge fund managers
discussing their work and investment ideas at the SALT
conference, where some 1,900 people gathered to network, meet
with investors and take the temperature of the $3.2 trillion
Last year Loeb told investors that he was seeing the first
innings of a washout for hedge funds. Last year more funds
closed down since the financial crisis and even many large
managers are overseeing less money than before.
(Reporting by Svea Herbst-Bayliss; Editing by Leslie Adler)