Once upon a time there was Dan Loeb, a Democrat. Then Barack Obama was mean to him, leading to one of his first unfortunate comparisons, and he’s been a pretty dedicated Republican ever since, unless you happen to be a Democrat who likes charter schools. So you’d expect him to be a little disappointed with last week’s results. And it could be too. But he probably doesn’t feel bad about it.
Daniel Loeb’s third point won nearly $ 400 million in a bullish bet on the US election result…. Mr. Loeb had stated that due to the company’s research and use of data providers, he was not unduly concerned about the impact of the elections on the markets. Mr. Loeb has made approximately $ 200 million since then and has made a total of approximately $ 600 million, or 7 percent, in profit this month. His fund was backed by Monday’s rally that canceled some of his largest holdings such as Prudential and Walt Disney. Third Point did not respond to a request for comment.
While Sangfroid has paid off a lot for Loeb so far, it’s not really Bill Ackman’s style – not that it hurts him. He’s worried, you see? Concerned for one about the future of American democracy and also about the rally that so generously replenishes the bottom line of its arch-enemy. And so, while really hoping it won’t make him as rich as last time, Billy positions himself for a lucrative downturn.
He said he made a new trade earlier this week to protect his equity exposure with corporate failure insurance.
“I hope we lose money on this next hedge,” said Ackman. “We are generally at a telltale time and what is intriguing is that the same bet we made eight months ago is available on the same terms as if there had never been a fire, and with the likelihood of being the World will be fine. “
He said the new coverage was nearly 30 percent the size of the bet he placed in late February when he bought a number of huge insurance policies that came with $ 71 billion in corporate debt.
Daniel Loeb’s third point wins nearly $ 400 million in a US election campaign [FT]Ackman puts new bet against corporate loans [FT]