Third Point with Daniel Loeb
The event-driven investment firm known for activism
In this article, we explore Daniel Loeb’s career: how he built Third Point, a hedge fund known for activism but equally successfully as a traditional event-driven value shop.
You will learn about Loeb’s evolution as an activist, a case study on a wildly successful activist investment, the firm’s organizational structure, how to get a job at Third Point, and more.
Let’s dive in.
Daniel Loeb
Daniel Loeb is the billionaire founder of Third Point. His affluent background is rooted in entrepreneurship, as his great aunt, Ruth Handler, invented the Barbie doll and co-founded the toy company Mattel with her husband Elliott.
Loeb has always been known for his outspoken nature, a trait that has been with him since childhood. In junior high school, Loeb even hired a classmate, Robert Schwartz, to serve as his bodyguard. Today, Robert serves as the managing partner of Third Point’s venture capital arm.
Loeb grew up in the picturesque Santa Monica, a beach town in the Los Angeles area. He attended school in Pacific Palisades, an affluent neighborhood known for providing a retreat to celebrities seeking peace away from bustling Beverly Hills.
Although Loeb initially attended UC Berkeley, he transferred to Columbia University, where he traded stocks outside of class. Despite earning $120,000, he lost it all in a single company named Puritan-Bennett Inc. using leverage. This early lesson on overconcentration and leverage influenced his approach to running Third Point, which opted for less leverage compared to its hedge fund counterparts.
More to come:
Loeb’s finance career
Third Point’s investment style
Products and fee structure
Organizational structure
How to get a job at Third Point