Loeb: Spinoff management teams sandbag forecasts to optimize incentive packages
Dan Loeb · Legendary Investor Dan Loeb on AI, Credit, & Third Point’s $25B Strategy · Invest Like The Best · May 28, 2026 · at 8:24
Dan Loeb, founder and CEO of Third Point, breaks down the structural incentives and market dynamics behind event-driven equity investing in corporate spinoffs.
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“Management teams would go out in the case of a spinoff. And do a road show that would present a very conservative view. Some might even say sandbag the numbers. Why? Because people are always creatures of incentives. Their incentive package would be set at the time of the spinoff.”
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