In a letter sent yesterday morning to a group of Democrat-leaning hedge fund managers and investors who have actively supported President Obama, Dan Loeb explained—in a way only he could—that the President is “just not that into” them.
Loeb’s enmity toward the current administration’s policies has been evident at least since an August 27 letter to investors, in which the founder of Third Point and former Obama supporter, said the President and his team, by proposing to raise taxes on hedge funds and private equity managers, were creating a hostile environment for investors. And in his third quarter investor letter, sent to clients yesterday, Loeb continued bashing the administration, saying that Federal Reserve chairman Ben Bernanke’s recent appearance on CBS show 60 Minutes “came off as a staged infomercial.” He also accused Obama of suffering from cognitive dissonance for supporting policies that have been rejected by the electorate.
It has been a sharp reversal for Loeb, who was a major supporter of Obama and helped raise hundreds of thousands of dollars for his 2008 campaign. In yesterday’s letter to the political supporters, Loeb implied that Obama never wanted his ideas, only his money.
The letter was sent at about 10 a.m. yesterday to a group that included Frank Brosens of Taconic Capital Advisors, James Chanos of Kynikos Associates, Marc Lasry of Avenue Capital Group and Eric Mindich of Eton Park Capital Management, among others, according to an individual who has seen the e-mail.
The letter, which compares wealthy investors’ continued support of Obama’s policies to battered wife syndrome, is addressed “Dear Friends/battered wives.”
It is that time of year and I just thought of the perfect gift in light of some of you. In case the President's hostage rant wasn't enough to turn you off, I thought I'd buy any of you a great book for gals who just keep on pursuing the wrong guy. Made popular on Oprah a few years back, “He's Just Not That Into You" seems like the perfect holiday stocking stuffer for true blue Democrats who just can't get enough of our President's smack downs on hard working successful Americans known as "the 2%."
Loeb goes on to argue, with tongue firmly in cheek, that Obama can be placated if his old supporters just keep quiet despite taking his rhetorical abuse.
I am sure, if we are really nice and stay quiet, everything will be alright and the President will become more centrist and that all his tough talk is just words; I mean he really loves us and when he beats us, he doesn't mean it; he just gets a little angry....
Continuing the trope, Loeb says Obama is a different guy in person:
I mean when I am alone with him—at $30,000 a plate fund raisers—he's really nice and once I got invited to the White House! It was so cool, because I could tell all my friends...and when he gives speeches, I mean I get to sit in the front row and my friends see me on TV.....and he usually doesn't hit me in the face [so] it doesn't show except for that one time...he's not that bad really, unless he gets drunk (from power)
Loeb then notes that Obama “really does love me or he wouldn't invite me to all those $30,000 a plate fund raisers and ask my opinion all the time, right?”
He closes by advising the letter’s recipients to read yesterday’s column by Daniel Henninger, deputy editor of The Wall Street Journal's editorial board.
Third Point did not immediately have a response.