Dan Loeb of Third Point says the economy is just fine. In fact, volatility equals buying opportunities. Loeb noted last week that “There haven’t really been any signs of recession from either the economic data, the surveys of our individual conversations with companies … We have actually increased our net exposure over the course of the month as some of these selloffs have created silly prices for securities.
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Loeb lost money last year at Third Point, but is looking to redeem himself in 2016. He’s increased his single-name equity shorts by four-fold over the last twelve months.
Loeb notes: “The value of reducing volatility, aside from lowering the blood pressure of our team and our investors, is it really gives you the opportunity … go in and make opportunistic acquisitions and purchases, which is exactly what we’ve been doing.”
He goes on: “Boards are holding the management teams more accountable, they’re getting a lot of pitches from bankers … We’re really focusing on securities that are undervalued, where we can make investments and be constructive and not have to take any confrontational role with management teams.”