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Loeb Boosts Short Bets Citing Sloppy Accounting, Volatility

  • Loeb says some valuations not supported by the real numbers
  • Third Point has more single-name shorts than long positions
Daniel S. Loeb, Founder, Third Point LLC.

Daniel S. Loeb, Founder, Third Point LLC.

Photographer: Jacob Kepler/Bloomberg
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Billionaire hedge fund manager Dan Loeb said he’s building bets against stocks that surged because companies are relying too much on dubious financial metrics.

“There’s been some real sloppiness in accounting, and this move toward using adjusted Ebitda and adjusted earnings has produced some companies that I think are trading on valuations that are not supported by the real numbers,” Loeb said Wednesday in a conference call held by Third Point Reinsurance Ltd., referring to earnings before interest, taxes, depreciation and amortization. “We’ve seen some real themes that favor the type of short selling that we do.”