The Collected Works of Daniel Loeb, Part IV

Hedge fund manager Daniel Loeb of Third Point apparently continues to produce cheerfully ill-tempered stuff. Rather than being part of an investment filing, however, this one supposedly comes from an email to Citadel Investment who he says has been poaching Third Point employees. Well, being the helpful fellow that he is, Daniel patiently explains to Citadel the error of its head-hunting ways.

[Note: The following was sent to me by a source who would like to remain anonymous, and to whom the email was forwarded, so I have to rely on their word in terms of the note’s authenticity. I have asked Third Point to verify, but I have received no reply.]

—– Original Message —–
To: [A Citadel email address]
At:  9/14  5:28

Dear Ken,

       I understand that you recently hired an employee of Greenlight
and have also attempted to hire Third Point employees in the past. I
think Andrew made a horrible decision based upon discussions that I have
had with numerous former and current Citadel employees/indentured
servants. I find the disconnect between your self-proclaimed “good to
great, Jim Collins-esque” organization and the reality of the gulag you
have created quite laughable. You are surrounded by sycophants but even
you must know that the people who work for you despise and resent you. I
assume you know this because I have read the employment agreements that
you make people sign.
       I understand your need to hire employees from other firms,
something that Third Point has not had to do based on the fact that
unlike yourself, I actually enjoy and have talent in investing and am
able to nuture others within my organization who I hire from wide
ranging disciplines such as graduate schools, private equity firms and
medicine. Let me be clear that under no circumstances are you to
approach any Third Point employees or attempt to offer them jobs.
       First of all, like Brad Radoff, who you poached from me some
years ago, you do not even know how to manage people who invest. He has
happily returned to the Third Point fold and is doing extremely well.
Secondly, those that you have approached know what low regard I hold you
and your over-rated firm and they are happy to meet with you and report
back to me the sorry state of affairs over there and your desperate
attempt to replicate our success. My warning extends to any attempt you
may make to hire employees of my friends in the event driven space:
should you attempt to hire people from them I will consider it a similar
act of war. My friends enemies become my enemies.
       Good luck extracting exhorbitant management fees and generating
mediocre returns with your bloated organization and ego. By the way
there is little I enjoy as much as watching from afar as your reputation
and “organization” declines at the same rate as your falling returns.



  1. Dan Loeb letteer to Citadel

    In addition to investing superlatively, Dan Loeb is a great writer – especially when he is full of invective. Infectious Greed: The Collected Works of Daniel Loeb, Part IV I think that he my be on a par with Samuel…

  2. That’s hilarious.

  3. Mark McCabe says:

    This guy needs a few punches to the head. I really dont care who he is or what he does. You simply dont carry on like a ‘wanker’.

  4. Look who’s wanking now, Mr. McCabe.