Dan Loeb and the Legion of Doom

In the jurassic age of the internet, long before blogs and google had begun to evolve into the dominant life form, a different kind of predator ruled the net.

The chat board poster.

The chat board poster is going the way of the dodo bird, but a mere 10 years ago they harnessed the power of the nascent online trading community to squash fraudulently promoted stocks or light candles beneath “story” stocks resulting in moves that would likely impress even the modern era hedge fund trader.

The exploits of Dan Loeb have been well chronicled in both the dead tree and blog communities.  His Third Point LLC, named for a Malibu surf break, has put together an enviable 10-year track record that have turned even the most plebeian early investors into Rockin-fellas by 2006.

Loeb’s fiery missives that turn investing into bloodsport have become de rigueur reading for less creative types who chronicle his every move.  Here is a recent excerpt for the neophyte amongst you...as he badgers the management and board of NABI Niopharmaceuticals (NABI)

you hide your heads in the nearest warm aperture in an apparent “ostrich defense” and ignore your shareholders ... in the hope that the Company’s owners will go away before your next annual meeting. We want to be clear that while the May 2006 Annual Meeting might have bought you time, unless a process is put into place to maximize shareholder value well prior to the next annual meeting we will work assiduously between now and then to ensure that you will have ample time to pursue your golf games and to enjoy the Florida sun thereafter.

and an instant classic from not long ago…

In the most recent quarterly results announced Wednesday, February 9th, the Company reported yet another “miss” on both lower revenues and poor margins. Short interest is one of the few benchmarks that seem to remain stable, with nearly 50% of the shares lent out to speculators who are betting that Mr. Dreimann will lead this Company into bankruptcy. Meanwhile, the Company’s proposed restructuring, which has been in the works for over a year, remains a chimera.(Letter To Salton, Inc. from Third Point LLC)

Kovner. Buffett. Loeb.  If these names don’t leave you in awe you should probably leave this site ASAP and delete the bookmark for eternity. Or at least until growth begins to outperform value.

Still, no one in the media has really chronicled Loeb’s earliest exploits…
as his alter ego ruled the quaint world of the dial up internet.  Thus, more for historicial perspective than entertainment value, we submit to you the early writings of the man who wields perhaps the most poisonous pen on Wall Street.

A man who turned a $3.3 million fund launch into a multi-billion dollar hedge fund complex. Who sports an ocean front home in East Hampton, a $40 million condo on CPW and best of all a wife who is barely more than half his age.

A man who singlehandedly brought the stocks of a half dozen fraudulent companies to zero and the sleazy promoters to their knees.

A man with whom honor is sacred and virtue safe.

Ladies and Gentlemen, meet Mr.Pink, aka Dan Loeb
ABANDON HOPE ALL YE THAT ENTER HERE

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