Intelligencer

Intelligencer: April 11–18

Wall Street Slap Fest!
London vs. New York.
Daniel Loeb, who runs the hedge fund Third Point, cemented his obnoxious reputation when he circulated an exchange he’d had with U.K.-based hedge-fund vet Alan Lewis. Lewis says it all started when Loeb called him, “unsolicited,” about possibly opening a London office. Lewis quickly e-mailed off his CV. To which Loeb fired back: “[W]hat are your 3 best current european ideas?” Then things rapidly deteriorated:

Lewis: “Daniel, I am sorry but it does not interest me to move forward in this way. If you wish to have a proper discussion about what you are looking to accomplish in Europe, and see how I might fit in, fine. Lesson one of dealing in Europe, business is not conducted in the same informal manner as in the U.S.”

Loeb: “One idea would suffice . . . We are looking for bloodthirsty competitive individuals who show initiative . . . We find most brits are a bit set in their ways and prefer to knock back a pint at the pub and go shooting on weekend rather than work hard.”

Lewis:“I did not achieve the success I have by knocking back a pint, as you say . . . I am Half American and half French . . . Things are done differently here, yes place in society still matters, where one went to school etc. It will take tact and patience (traits you obviously do not have) to succeed in this arena.”

Loeb: “Well, you will have plenty of time to discuss your ‘place in society’ with the other fellows at the club. I love the idea of a French/English unemployed guy whose fund just blew up telling me that I am going to fail. At Third Point, like the financial markets in general, ‘one’s place in society’ does not matter at all. We are a bunch of scrappy guys from diverse backgrounds (Jewish Muslim, Hindu etc) who enjoy outwitting pompous asses like yourself . . . Your ‘inexplicable insouciance’ and disrespect is fascinating; it must be a French/English aristocratic thing. I will be following your ‘career’ with great interest . . . [T]here must be an insurance company or mutual fund out there for you.”

Lewis: “Hubris.”

Loeb: “Laziness.”

Lewis says, “I continue to, uh, receive correspondence from Mr. Loeb, to which I’m obviously not responding.” What’s he writing? “I’d rather not say. It was a private conversation that should not have gone into public domain. I can say that I’ve gotten a lot of positive feedback from people who know him. And, well, Mr. Loeb’s not apologizing.” Loeb didn’t return calls.
—Jada Yuan

EDITED BY CARL SWANSON