Billionaire investor Dan Loeb trumpeted his bets on Buffett-backed RH, crypto, and private companies in his Q2 letter

Daniel Dan Loeb
Dan Loeb.

  • Dan Loeb discussed his RH investment, his crypto beliefs, and why he’s eyeing private companies.
  • The Third Point chief joined Warren Buffett’s Berkshire Hathaway as a RH shareholder last year.
  • Loeb owns a stake in Sam Bankman-Fried’s FTX, and invested in SentinelOne years before its IPO.
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Billionaire investor Dan Loeb trumpeted his recent bet on RH, touted cryptocurrencies, and underlined the value of buying into private companies in his second-quarter letter to investors in his Third Point hedge fund.

Joining Warren Buffett

Third Point first invested in RH – formerly known as Restoration Hardware – in the fourth quarter of 2020. The fund owned 278,000 shares, or 1.3%, of the high-end furniture retailer at the end of March. That position is worth $200 million today, based on RH’s current stock price of around $720.

In his letter, Loeb described RH CEO Gary Friedman as a “once-in-a-generation leader who is both an innovator and effective capital allocator.”

The fund manager also argued RH’s premium brand and novel strategy differentiates it from peers. “In the same way that Ferrari should not be compared to other auto manufacturers, we believe RH should not be considered a traditional furniture company,” Loeb said.

Warren Buffett’s Berkshire Hathaway may well share that view. The famed investor’s company has built an 8% stake in RH over the past two years that’s worth $1.3 billion today, largely thanks to RH’s stock price more than quadrupling in that timeframe.

True believer

Loeb described cryptocurrencies as a transformative innovation in his letter.

“While crypto is popularly viewed as an alternative (and speculative) asset class, we are most intrigued by its potential to become a disruptive technology, impacting broad swaths of the economy,” he said.

Loeb highlighted three of crypto’s key features: its accessibility and transparency, the prospect that it could speed up and reduce the cost of transactions, and the sense of independence it gives its fans.

The investor predicted “extreme volatility in price and sentiment” going forward, but argued that crypto’s rich potential outweighed those challenges. He also downplayed the risk of a regulatory crackdown, suggesting it could clarify the industry’s rules and attract more money.

Loeb’s crypto beliefs have spurred him to invest in CipherTrace, which helps crypto exchanges comply with financial regulations, Bitwise, a passive-asset manager, and FTX, the digital-asset exchange founded by crypto billionaire Sam Bankman-Fried.

Getting in early

Third Point invested in SentinelOne at a post-money valuation of $98 million in 2015. The cybersecurity company went public this summer and now carries a $14 billion market capitalization, valuing the fund’s stake at well over $1 billion today.

Loeb highlighted that massive gain to underscore how lucrative bets on private companies can be. He described them as an “indispensable way for us to create significant positions which we would never be able to replicate by waiting for such companies to come public.”

The fund manager also noted that he’s finding plenty of excellent businesses off the beaten track.

“We see many high-quality companies ‘hiding out’ behind the opaque curtain of corporate reorganizations, or smeared by the taint of having come public in an unorthodox manner and bearing the four scarlet letters “S-P-A-C,” he said.

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Stanley Druckenmiller and Dan Loeb’s Third Point back $70 million funding round for crypto asset manager Bitwise

Druckenmiller, Stan Druckenmiller
  • Stanley Druckenmiller and Dan Loeb’s Third Point participated in a $70 million Series B fundraising round for Bitwise Asset Management.
  • Bitwise manages the world’s largest crypto index fund along with a host of other crypto fund products.
  • The round was led by prominent tech investor Elad Gil and Electric Capital and values the company at over $500 million.
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Stanley Druckenmiller and Dan Loeb’s Third Point participated in a $70 million Series B fundraising round for Bitwise Asset Management, the company announced on Tuesday.

The round was led by prominent tech investor Elad Gil and crypto venture fund Electric Capital and values the company at over $500 million. Prominent investors including Druckenmiller, Third Point, Bridgewater CEO David McCormick, KKR founder Henry Kravis, and others joined the round.

Bitwise manages the world’s largest crypto index fund, the Bitwise 10 Crypto Index Fund, along with a host of other crypto fund products. As of the first quarter of 2021, Bitwise managed over $1.2 billion.

The San Francisco-based company plans to use the funding to strengthen its balance sheet and accelerate the national buildout of its organization, team and product suite. Bitwise CEO Hunter Horsley said the new capital will cement the company’s “position as the premier crypto partner for professional investors.”

“We’re thrilled to be backing Bitwise,” said Loeb, Third Point’s CEO and CIO. “Bitwise has assembled a best-in-class team, has built professional-grade products, and is doing all the right things to build an enduring institution in the crypto economy.”

The news of Loeb’s participation comes a week after The Information reported that his hedge fund is co-leading a new financing round in BlockFi, a wealth management and trading firm for cryptocurrency holders.

Third Point, which manages about $17 billion, disclosed in a regulatory filing in late March that five of its funds hold crypto assets under custody with Coinbase. The amount and duration of investment is currently unclear.

Meanwhile, Stanley Druckenmiller has disclosed that he owns “some” bitcoin, and has also said that owning bitcoin could be a good hedge against inflationary pressure.

Existing Bitwise backers including Highland Capital, Khosla Ventures, Blockchain Capital, Castle Island Ventures, Alison Davis, Adam Nash, and Naval Ravikant participated in Series B round as well.

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Hedge-fund titan Dan Loeb exited his Palantir trade, made a big bet in a newly public company, and trimmed big tech stocks in the first quarter of 2021

Dan Loeb
  • Dan Loeb exited his Palantir position in the first quarter, selling 2,356,991 shares of the big data company, securities filings show.
  • The Third Point chief also trimmed back his shares of Alphabet, Amazon, and Facebook.
  • Loeb told investors in a letter earlier this month that his fund returned 11% in the first quarter of 2021.
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Billionaire investor Dan Loeb exited his Palantir trade, made a large bet in a newly public company, and trimmed some of his big-tech holdings in the first quarter of 2021.

Third Point securities filings for the period show that Loeb exited his Palantir position, selling 2,356,991 shares of the big-data company. The company’s stock is down nearly 13% year-to-date as investors rotate into stocks that hinge on an economic recovery.

Loeb added 41,500,000 shares of Paysafe, a British payments firm that went public via a special purpose acquisition company during the quarter. The company is his fifth largest holding. His eighth largest holding is a new position in CoStar, a commercial real estate company.

The Third Point chief said in a letter to investors earlier this month that his flagship fund gained 11% in the first quarter, outperforming the S&P 500.

Loeb said that one of his best-performing investments last quarter was Upstart. The fund first invested in Upstart at a $145 million valuation about six years ago. It now owns roughly 13.3 million shares for a value of around $1.7 billion following the AI-powered lender’s IPO in December. Upstart is the fund’s top holding.

Loeb also trimmed back on some of his big tech stocks. He slimmed down his positions in Alphabet, Amazon, and Facebook, but added 300,000 shares of Microsoft.

Loeb also exited his positions in Pinterest, Adobe, Salesforce, Alibaba, Nike, and DoorDash.

The activist investor said that he’s bullish on stocks and the US economy in his investor letter, citing ample liquidity in markets, loose monetary and fiscal policy, and a supportive Federal Reserve.

Read more: UBS says to buy these 42 ‘new momentum’ stocks that are poised to outperform in a rising inflation environment

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Investor Dan Loeb’s $17 billion hedge fund Third Point holds an undisclosed amount of cryptocurrencies with Coinbase

Dan Loeb
Dan Loeb.


Dan Loeb’s New York-based hedge fund Third Point is yet another name in a line of Wall Street players to reveal cryptocurrency investments.

Third Point, which manages about $17 billion, disclosed in a regulatory filing in late March that five of its funds hold crypto assets under custody with Coinbase. The amount and duration of investment is currently unclear.

In a separate brochure, the firm said it could invest in crypto directly or indirectly through derivatives contracts.

Coinbase recently disclosed it holds $122 billion worth of institutional investments, which make up about 54% of the crypto exchange’s total assets. The company expects to see “meaningful growth” through the remainder of the year, after raking in revenues of about $1.8 billion in the first-quarter of 2021, owing to increased institutional interest in crypto.

The exchange will go public via a direct listing on the Nasdaq this Wednesday.

Loeb’s Third Point, which specializes in shareholder activism, may have taken the plunge into cryptocurrencies before the billionaire said last month he was exploring the space. “I’ve been doing a deep-dive into crypto lately,” he said in a tweet at the time. “It is a real test of being intellectually open to new and controversial ideas.”

The hedge fund did not specify which cryptocurrencies it holds, but crypto investor Anthony Pompliano tweeted that it’s holding bitcoin.

Screenshot 2021 04 12 at 13.28.41

Loeb himself confirmed the fund’s crypto holdings in a tweet citing a CoinDesk report about its custody deal with Coinbase.

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A billionaire New York hedge-fund CEO just dropped $20 million on a Miami Beach mansion as Wall Street firms plan moves to Florida

dan loeb miami beach
A Google Maps street view of Loeb’s new Miami Beach home.

New York hedge-fund executive Dan Loeb has picked up a Miami Beach mansion for $20 million, Katherine Kallergis reported for The Real Deal. 

Loeb, the founder and CEO of New York-based hedge fund Third Point, is worth about $3 billion, according to Forbes.

His new waterfront home has seven bedrooms and nearly 14,000 square feet of living space, according to the listing. It features a home theater, a rooftop deck, a private boat dock, and separate guest quarters. Loeb bought the house from developer Peter Fine, per the Real Deal.

dan loeb
Dan Loeb, left, speaks onstage alongside CNN’s Van Jones at the launch of a criminal justice initiative in NYC in 2019.

The waterfront home sits on North Bay Road, a coveted residential area that millionaires and celebrities. Luxury real-estate agent Nelson Gonzalez, who calls it “the Park Avenue of Miami Beach,” told Insider in 2019 that he’s sold homes on the road to the likes of Cher and Billy Joel. Last summer, Karlie Kloss and Joshua Kushner paid $23.5 million for a home on North Bay Road. At the end of December, supermodel Cindy Crawford and husband Rande Gerber paid $10 million for a teardown.

Jills Zeder Group, who brokered the deal, declined to comment or share any photos of the property.

A spokesperson for Loeb’s company, Third Point, also declined to comment.

Everyone is moving to Florida

South Florida has seen a flurry of real-estate activity during the pandemic, as politicians, celebrities, executives, and financial firms move to the Sunshine State.

Former President Trump and his wife Melania are reportedly moving to his Mar-a-Lago Club now that his term has ended. In December, Ivanka Trump and Jared Kushner bought a $32 million lot on Indian Creek, the private island known as Miami’s “Billionaire Bunker.” That same week, it was reported that Kushner’s brother, Joshua Kushner, had bought a home in Miami Beach with wife Karlie Kloss earlier in the year. In January, Tom Brady and Gisele Bündchen joined Trump and Kushner as homeowners on Indian Creek, paying $17 million for a home they plan on demolishing.

Loeb’s reported purchase, which is about a 15-minute drive from Indian Creek, is the latest sign of an apparent finance migration from New York to Florida. 

As Insider recently reported, recent moves by finance industry giants indicate that a big chunk of Wall Street could be moving to Florida.

Manhattan-based hedge fund Elliott Management plans to move its headquarters from Manhattan to West Palm Beach, Bloomberg and the Financial Times reported in October. And last month it was reported that Goldman Sachs was considering shifting its asset management operations to Florida. Blackstone, the world’s largest private equity firm, also plans to open an office near Miami. 

In December, an unnamed private equity executive from New York dropped $33 million on a Miami Beach penthouse, and a former Goldman Sachs executive paid $11 million for a Miami Beach home.

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