Bess Levin has posted the annual letter by Daniel Loeb of The Point. Loeb’s Third Point Partners L.P. fund returned 41.7% and his other funds also beat the S&P 500 handily.
Here is what he said on the market outlook:
Loeb also stated that from now on, he will stop writing quarterly letters “in order to keep our views proprietary and maximize time spent on investing”. Instead, he will share his market observations and outlook on our Investor Quarterly Calls.
Read the complete annual letter here.
Here is what he said on the market outlook:
We entered 2011 positioned for a continued global recovery, sharp price increases in commodities, and the view that undervalued companies would either appreciate or be acquired. During the first month of the year, two of our holdings each announced agreements to be acquired at premiums. We remain constructive on equities in general and on the US and European economies. Our greatest concern is the growing consensus around the bullish view we have held since April 2009. Therefore, we welcome sharp corrections like the two we had last month, the first a decline based on worries about Chinese inflation and the second, a sell-off due to the Egyptian political crisis, each of which we used to increase certain positions.
The extraordinary turn of events in Egypt, and market movements generally during the month of January, point to two important observations about financial markets today. First, the world has become hyperconnected, resulting in instantaneous transmission of information globally or across particular affinity groups. Second, we have more information and data at our fingertips than ever before. This widely accessible information glut along with market participants’ routine overreaction to single data points has created a unique opportunity for us as investors to employ a dispassionate analytical framework which allows us to capitalize on the irrational fluctuations of the herd.
Loeb also stated that from now on, he will stop writing quarterly letters “in order to keep our views proprietary and maximize time spent on investing”. Instead, he will share his market observations and outlook on our Investor Quarterly Calls.
Read the complete annual letter here.
