Daniel Loeb Targets Intel, Launches New Venture Capital Fund

Third Point, the investment firm spearheaded by Daniel Loeb, is highly active as 2020 draws to a close. The firm has achieved substantial gains despite the significant market volatility experienced earlier in the year – Reuters reports a 12.3% increase in returns as of earlier this month – and the company evidently anticipates further expansion opportunities within the technology industry.

Yesterday, Asa Fitch of the Wall Street Journal reported that the hedge fund delivered a strongly worded letter to Intel’s chairman, Omar Ishrak, requesting substantial alterations to the company’s leadership. This demand follows Intel’s considerable decline in competitiveness compared to its peers in recent years. As previously discussed in TechCrunch’s 2020 review of the semiconductor market, Intel faces a critical juncture in the coming year, and the increased scrutiny from activist investors is now amplifying the efforts to resolve Intel’s core issues.

The Journal indicates that Third Point has taken a $1 billion ownership position in Intel. Following this announcement, Intel’s share price rose by 5%, as investors express optimism that the increased pressure will lead to improved performance.

However, it appears that being a publicly traded company is not a prerequisite for attracting investment from activist hedge funds.

This morning, Miles Kruppa of the Financial Times revealed that the hedge fund is seeking to secure up to $300 million for a new investment fund, with an anticipated closing date in February. Third Point has previously engaged in venture capital investments through its Third Point Ventures division, though this aspect of the business has generally received less media attention than its more prominent activist investments.

Historically, the firm’s venture investments have focused on the technology, healthcare, and financial technology sectors, including investments in companies like SentinelOne and Yellowbrick Data, as detailed by Crunchbase. The focus, in terms of investment stage or specific industries, for the new fund remains currently unknown, pending its potential closure.