Loeb: Solely valuation-based shorting is risky due to retail squeezes
Dan Loeb · Dan Loeb: The Lost Art of Short Selling, and Why Stock Picking is Back · Jun 5, 2026 · at 16:34
Activist hedge fund manager Dan Loeb of Third Point discusses why his firm avoids shorting stocks solely based on high valuations at the All-In Liquidity Summit.
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“I think one thing that we've avoided is kind of evaluation, a solely valuation based approach. There's a, I've just seen I've seen too many people get run over by shorts that have dumb valuations, but they get captured on, you know, Reddit or one of these other things, and they just get their, you know, or like some of these space companies right now that there's no rhyme or reason.”
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