Embedded below is Daniel Loeb of Third Point's most recent letter to investors. Loeb is one of the few who has continually outperformed the market through a value and activist approach, as well as shifting funds into credit markets when the risk is worth the reward. Loeb shares his thoughts Third Point's foray in the EU debt markets, as well as giving some color on recent equity investments in Murphy Oil and AIG.
"...Treasury’s ultimate sale of its remaining 16% stake in AIG will
serve as a critical catalyst for the company, allowing initiation of a
dividend, a change in management’s compensation structure to a more
standard incentive-based bonus payout model, and the removal of the
overhang” of Treasury ownership. Given these multiple paths to value
creation, we believe AIG’s current valuation at ~10x consensus 2013
earnings and 0.5x pro forma tangible book value of $65 per share has
significant upside from these levels."
Loeb also manages to leave investors with a few choice quotes from 2Pac and Boyz II Men to shed further insights on Third Point's logic.
Third Point Q3 2012 Investor Letter TPOI