Dan Loeb has done the unthinkable… He's beaten the market for 13 straight years.
If you had invested $100,000 with Dan's Third Point hedge fund in
mid-1995, it would be worth nearly $2.4 million today. That's a 22.5%
compound annual gain, versus a 7% gain in the same period.
And Dan has delivered this performance without taking big risks…
He has only underperformed the stock market one year – 1998. And recently, Absolute Return magazine named Dan's fund the best in its category for delivering the best risk-adjusted returns over the last 12 months.
So what's Dan doing with his money now? Let's take a look…
As of the end of 2010, Dan liked gold…
"Loeb had about six percent of Third Point's assets in bullion in
November, the biggest gold bet he's ever made," according to the latest
issue of Bloomberg Markets magazine.
"He started buying in September, when the metal was trading at
$1,250 an ounce, spurred by a U.S. government report saying Washington
can't sustain the deficits it's been running."
At the end of December, according to published papers from Loeb,
gold was still his top holding. Loeb's fund returned 41.5% in 2010.
Many investors look at how much gold has risen and think, "I missed
it." They think, "It's already soared. It's too risky to buy this
But just because something has gone up doesn't mean it can't go up a lot more.
And if you're buying gold today, you're buying near the same level Dan Loeb bought.
Dan has delivered incredible performance. He's consistently found low-risk, high-return ideas.
As of the end of December, this hedge fund manager with an astounding track record has gold as his top holding.
If Loeb is right about this investment – and he usually is – you sure haven't missed it in gold…