Dan Loeb Sees Old Rigs As Great Shorts, As He Dodges Bullets In 2014

It’s a volatility trader’s market, Dan Loeb’s hedge fund, Third Point, said in a fourth quarter investor letter, as he noted key structural concerns with the economy. Dan Loeb says managing volatility became as important as stock selection in 2014 From Third Point’s perspective, it is managing volatility and risk, not stock selection, which “has proven to be almost as important as good stock-picking in generating investment returns.” While Dan Loeb derided volatility – by its own admission the hedge fund is fund’s “mediocre” 2014 results, near 6 percent return, “were due to a combination of poor trading during market volatility…