In a newly-released investor letter, Dan Loeb defended modern-day activist techniques, and revealed what appears to be a new long position in the Japanese automaker Suzuki Motor.
Detractors of mainstream activists are simply wrong, Loeb wrote in the letter dated July 31. Loeb highlighted Third Point's successful track record at installing talented CEOs, and inspiring figures like Japanese Prime Minister Shinzo Abe to encourage better governance and other improved management techniques.
Third Point's flagship hedge fund, Third Point Offshore, is up 5.7 percent through July. With those results in hand, the hedge fund guru used the opportunity to take aim at those who dismiss the efforts of financial activists.
"Lately, a varied chorus of powerful union bosses, politicians and candidates, an asset management company executive, and a few ivory tower types, have asserted that activism is short-term in nature," Loeb wrote.
These same individuals think of activists as "'hit and run' investors who only care about making a quick buck while leaving a company and its employees in ruins," Loeb said.