Fourth Quarter Shareholder Letter of Dan Loeb, Third Point Capital

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Mar 15, 2012


Dan Loeb discusses his positions and Long Equity: Volkswagen, long Credit: Ally Financial Long Equity: Yahoo! – The Case for Alibaba:

As investors are aware, we established a sizeable position in Yahoo following a difficult

operational and strategic stretch during the waning days of CEO Carol Bartz’s tenure that

culminated in a significant sell”off in the shares in August. Initially, we were attracted to

the company simply by its significant discount to intrinsic value. In September, we

announced publicly that we had accumulated 5.2% of the shares of the company and laid

out our case for why the valuation was depressed. While the travails of “core Yahoo” grab

all the headlines, core Yahoo forms only a modest portion of the Company’s actual value (a

mere $1.50 per share, trading at ~$14.49 as of 03/12/12). The after”tax value of Yahoo’s

Asian assets – Alibaba and Yahoo! Japan – currently constitutes $11 per share of its value

(76%), with an additional $2 per share of net cash.

Read the complete letter