Hedge fund manager Dan Loeb told investors that he sees attractive investment opportunities this year, however he also warned them of volatility.
Reuters reported that Loeb, the founder and chief executive of New York-based Third Point, said in his quarterly letter dated May 1 that said some sectors were "exhibiting bubble-licious valuations" and that the decline in "overinflated sectors" hurt but was ultimately "healthy.”
According to the news outlet, Love also stated that the U.S. economy is showing signs of picking up and that the old trading adage "sell in May and go away" may not hold this year.
Third Point has delivered an average annual return of 21% since its 1995 inception. It made headlines recently when it launched a proxy battle against auction house Sotheby’s in an effort to win three board seats.
Third Point manages about $14 billion in assets.