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Fairfax Claims in Suit Third Point’s Loeb Lied to Investors

Daniel Loeb, head of hedge fund Third Point LLC, “lied” to his investors when he told them that extensive stock research led him to bet against Fairfax Financial Holdings Ltd., the Canadian insurer alleged in court documents obtained by Bloomberg News.

In a letter to investors “Loeb represented that the decision to short Fairfax-related positions was one of the ‘most thoroughly researched investments in the firm’s history,’” lawyers for Toronto-based Fairfax said in documents filed late last year in state court in New Jersey.