Daniel Loeb Writes Percy
The successful hedge fund manager Daniel Loeb is written up in the current issue of Men's Vogue. I'm too embarrassed to be seen buying a women's magazine, but you can read the first few paragraphs here. Loeb is famous for heaping scorn on the boards and management of his underperforming portfolio companies. Here's a fairly recent example:
I haven't been spared the abuse of Loeb. I don't mind; I find it humorous and refreshing. Anyway, here's an excerpt from a recent exchange of instant messages:
[Y]ou hide your heads in the nearest warm aperture in an apparent "ostrich defense" and ignore your shareholders (the top three now owning over 28% of your shares in aggregate) 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.Loeb is also known for tangling with another famous fund manager, Ken Griffin:
There is little I enjoy as much as watching you from afar as your reputation and 'organization' declines at the same rate as your falling returns.(Also, see this e-mail exchange with a potential recruit.)
I haven't been spared the abuse of Loeb. I don't mind; I find it humorous and refreshing. Anyway, here's an excerpt from a recent exchange of instant messages:
DL: Wake up, Percy! It's 5:30 a.m. You're probably still in bed or drinking moonshine in your underwear next to the refrigerator on your front porch. Southerners are lazy and slow, and the South will continue to underperform Third World countries until more Northerners move there. This global warming stuff must have you concerned. Why would any Northerner move South with Southern temperatures moving North? Anyway, I just finished writing my fifth eight-page letter to the Board of [name redacted] threatening a proxy fight. Since you have a big stake in the company I wanted to make sure you are ok with my proposed board shake-up.You can find links to more of Loeb's missives at his Wikipedia entry.
PW: Dan, while you were sleeping I sold a stake in a Korean bank for a bigger profit than your entire assets under management. By the end of the day, I'll control the world's uranium supply. I'm fine with the shake-up, but I can just make a phone call and we'll have resignations and new directors by tomorrow.
DL: Fine. It's amazing to me that with all the cousin-loving down there in North Carolina that you and Julian Robertson didn't turn out to be in-breds with a thing for pigs and Ned Beatty.

Oh, if only someone really could put him in his place like that. He's been quite silent lately (out of a desire to raise institutional money, perhaps). But, really, how nerve-provoking can you be at his height? Maybe it's the Napoleon complex talking in those letters.
Josh, You're obviously a fool. Start a public company and Loeb will crush you!
Percy, with your 90+% avg. annual returns and $80 billion fund you really don't have to be so kind.