Loeb: Third Point has been shorting homebuilder-related equities
Dan Loeb · Dan Loeb: The Lost Art of Short Selling, and Why Stock Picking is Back · Jun 5, 2026 · at 17:02
Dan Loeb of Third Point details his firm's short thesis and position on homebuilders, citing structural impairments and high land commitments.
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“We had, ah, a really strong view on home builders from last year that, ah, there were two things going on. It wasn't just It wasn't just rates, mortgage spreads that were depressing housing prices, that home prices, that the home building industry was first structurally impaired because of the way that they were all pretending to be NVR, which is they all pretending to be asset light, but they had massive commitments to these land pools, which in, in things that they said were options, but they were really very committed in the capital and that that value was going on. But that the home building industry was really the last industry that had this post-COVID hangover of inventory disruptions and pricing pricing that really made no sense. You know, you had all those prices went up to unsustainable levels, but so did building costs went up and buyers are no longer able to pay those prices at the current, current in the current financing environment, but that the, but there have also gotten squeezed by inflation and costs. So that's been, you know, something. So we've been sure things related to that.”
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