Third Point

Activist hedge fund founded by Daniel Loeb in 1995. Known for high-conviction long/short investing and shareholder letters that combine sharp market analysis with literary framing.

The Q1 2022 letter, quoted at length by Frederik Gieschen in Third Point Q1 2022 Letter… (tweet), captures the fund’s voice: “To be an investor is to live constantly at the intersection of story and uncertainty.” Loeb describes story as inseparable from the mental models process: “We build our mental models, frameworks, and processes to try to accurately price securities and overlay them with a story about the economic, geopolitical, and psychological factors. The key, of course, is to change your framework when the environment changes.”

On the risk of success hardening into rigidity: “I have seen many investors (including myself) stumble after years of success because they did not adapt their models as conditions shifted.”

Where this appears

• Third Point Q1 2022 Letter… (tweet)