ValueWalk’s March 2021 Hedge Fund Update: Klarman, Loeb, Reddit And Much MoreJacob Wolinsky
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Featuring Seth Klarman and Dan Loeb's investment in Intel, losses and profits from Reddit's frenzy, and an analysis of hedge fund pay.
Seth Klarman and Dan Loeb Pile into Intel
Towards the end of last year, activist hedge fund Third Point LLC wrote to Intel Corp, asking the chip manufacturer to consider strategic alternatives for the group, including a breakup or sale of parts of the business.
Third Point, which is managed by the activist investor Dan Loeb, reportedly wrote to Intel Chairman Omar Ishrak calling for immediate action to boost the company’s position as a significant provider of processor chips for PCs and data centers.
The hedge fund had acquired a $1 billion stake in Intel before writing the letter. In its letter, the hedge fund asked the company to urgently address its “human capital management issue,” as many of its talented chip designers have fled, “demoralized by the status quo.”
According to Loeb’s year-end letter to investors, the hedge fund intends to be a long-term Intel shareholder. The letter also expressed confidence in the chipmaker’s new Chief Executive Officer, Pat Gelsinger.
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