market folly

Third Point's founder Daniel Loeb today disclosed a new position in FedEx (FDX) at the Dealbook conference which was shown on CNBC and said he met with the CEO.

Loeb said that, "We had a very constructive discussion about the company."  He also commented that he is not looking to oust the CEO.

Third Point isn't the only prominent hedge fund interested in the company, either.  Our Hedge Fund Wisdom newsletter highlighted that John Burbank's Passport Capital and Richard Perry's Perry Capital both initiated stakes in FDX in the second quarter.  Perry's position was quite notable at the time, as they owned over $384 million worth and it was one of their largest disclosed US longs.

The thesis on this name focuses on improvement in profitability, bringing margins more in-line with competitors, as well as favorable tailwinds like gas prices.

Loeb also talked about shareholder activism and specifically about Sony (SNE).  Loeb argues they're more like private equity investors.  When asked whether or not Sony was a bet on Japan, Loeb replied, "We remain very bullish on Japan."

Embedded below are the videos of Loeb's comments:

Video 1 on FedEx:

Video 2 on Sony:

Video 3 on activism:

Video 4 on Herbalife:

For more on this hedge fund, we've posted up Third Point's Q3 letter as well.