Unstructured Finance

By Matthew Goldstein

Is hedge fund manager Dan Loeb considering planting his Third Point flag somewhere in Asia?

A person close to the New York-based fund says Loeb has no plans to open an outpost in Asia. But investors familiar with Third Point are fueling speculation that Loeb may be considering doing that at some future time.

The speculation about Loeb’s interest in Asia may be the result of a two-week tour Loeb took of China and Hong Kong earlier this spring. The visit was part vacation/part educational for Loeb.

Overall, Loeb is said to be bullish on China. The Third Point manager doesn’t share the view of noted short-seller Jim Chanos, who is openly calling the Chinese growth story a bubble that’s waiting to pop.

Right now, China remains more of a fascination than a reality for U.S. hedge fund managers. Chinese investors are generally prohibited from investing in hedge funds–especially ones in the U.S. and Europe.

By Matthew Goldstein

Dan Loeb and Jim Chanos may not be the best of friends, but a five-year-old stock manipulation lawsuit filed by a Canadian insurer has revealed a one-time alliance of sorts between the hedge fund managers.

It appears Loeb followed Chanos’ lead in shorting–or betting against–shares of Fairfax Financial in 2002 after exchanging a series of emails about the Canadian insurer that summer.

Litigation papers in the lawsuit reveal that Chanos initiated the email exchange with Loeb, asking the Third Point hedge fund manager if he was shorting shares of Fairfax. Loeb responded to Chanos’ email by asking whether he should be. Chanos wrote back that in his opinion Fairfax’s  shares were “going to zero.”