Bloomberg – Daniel Loeb, whose Third Point LLC is being investigated by regulators, said his "give-and-take” with other hedge-fund managers doesn’t violate securities laws. <\/p>\n
The U.S. Securities and Exchange Commission is probing New York-based Third Point, which manages $5.6 billion, for its communications with other hedge funds, Loeb said in a July 25 letter to clients. The investigation follows an SEC audit last year during which examiners noted the firm "regularly communicated with hedge funds about investment and trading ideas,” according to the letter. <\/p>\n
"Such conversations permit us to test our hypotheses and refine our thinking and, as a result, we believe that participating in give-and-take with other managers is in the best interest of our investors,” Loeb wrote in the letter, a copy of which was obtained by Bloomberg News. "Our outside counsel has examined this matter thoroughly and assured us that our position is consistent with the securities laws.” <\/p>\n