Dan Loeb's Third Point LLC took new equity stakes in Goldman Sachs, Bank of America, JPMorgan Chase during the fourth quarter, according to regulatory filings on Friday, on a bet that interest rate hikes and operating leverage will jack up returns.
Reuters reports that in a letter to his investors dated Feb. 1, and seen by Reuters, Loeb said banks will increase returns on equity by between 2 and 4.5% over the next two years "before tax cuts or deregulation is considered."
Third Point bought 400,000 shares of Goldman Sachs; 17.5 million shares of Bank of America; and 5.3 million shares of JPMorgan Chase, the filings show.
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