The stock market is in a volatile ride this week due to the Trump administration and round-trip tariffs from various countries. But third-point Daniel Loeb believes investors should relax. Hedge fund managers believe that stocks will benefit from the macro environment going forward, despite the period of volatility brought about by President Donald Trump’s unique policy making. “Overall, the third point is that we hope that the equity investment environment will continue to be preferred, which is an unconventional approach to this administration in communicating and enacting policies that affect the market and economy. We expect there will be a warning that there is likely to be a regular dislocation caused by the Loeb, “We wrote in his latest investor letter on Tuesday. Famous investors pointed out that using critical thinking is important amidst the constant flow of news headlines and policy declarations from the Trump administration. He cited recent volatility surrounding Deepseek, an artificial intelligence competitor from China, as an example of irrationality in the market. Investors said they believe Trump’s recent tariffs on Mexico, Canada and China are less influenced than implied headlines. China retaliated with a surcharge of up to 15% for certain US imports from February 10th. Loeb’s comments have been more optimistic than other well-known investors warning of the negative impacts of Trump’s tariffs and immigration policies. Point 72’s Steve Cohen said some of Trump’s policies will cause inflationary pressure and hinder consumer spending, and he expects the wider market to become bumpy later this year. Paul Tudor Jones said Monday that he believes financial markets are far less stable to enter Trump’s second term than in 2017, and there is no room for policy errors. The third-point flagship fund returned 9.2% in the fourth quarter, increasing its 2024 profit to 24.2%. This performance outperformed the S&P 500’s 23.3% profit last year. “Investment managers remain optimistic about the increasing number of sectors that benefit specific benefits from these policies, as well as M&A and other business activities that support event-driven frameworks,” Roeb wrote. Top performers in his portfolio for the fourth quarter include Amazon, Tesla, LPL Financial Holdings and Apollo Global Management, Loeb said.
