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© Reuters. Third Point’s Loeb says Cathie Wood has ‘stonk hodlers’ mentality

By Sam Boughedda

Billionaire investor Dan Loeb isn’t impressed with Cathie Wood, according to a tweet posted on Wednesday.

Loeb, who runs New York-based Third Point, said Wood’s memo should be used “as a treatise to study the mindset of stonk hodlers.”

Wood has seen rising rates and surging inflation significantly impact her exchange-traded funds in 2022, with stocks such as Tesla (NASDAQ:) and Zoom Video Communications (NASDAQ:), which she has bet on, tumbling.

Wood has previously stated that she looks to identify companies with high-impact innovations.

Earlier this month, Wood published a memo defending her firm’s strategy.

“In our view, the companies in which we invest are sacrificing short-term profits to capitalize on the exponential growth and highly profitable opportunities that a number of innovation platforms are creating. Companies catering to short-term oriented investors and leveraging their balance sheets to pay dividends or manufacture earnings with share repurchases do not seem to us to be investing enough to catch these waves of innovation,” she wrote.

However, Loeb, whose largest holdings in the past quarter include Colgate-Palmolive (NYSE:), PG&E Corp (NYSE:), and Danaher Corporation (NYSE:), said in reply to the memo posted by Wood that “anyone teaching a value investing class or one on investment psychology should use this memo as a treatise to study the mindset of stonk hodlers.”

“Note the disparaging comments on luddites who look at archaic measures of value like cash flow as short term traders,” he added.

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Image and article originally from www.investing.com. Read the original article here.