© Stocksak. FILEPHOTO: Dan Loeb (CEO and founder of Third Point) speaks at the Active-Passive Investor Summit by 13D Monitor in New York City on October 18, 2022. REUTERS/Brendan McDermid
By Svea Herbst-Bayliss
NEW YORK (Stocksak), – Billionaire investor Daniel Loeb seeks out more promising startups and is focusing his efforts on Israel.
Third Point LLC, a $14 billion New York-based hedge fund, is opening a Tel Aviv office on Monday. This is a new outpost in thriving technology city Tel Aviv.
Third Point Ventures, one of the most successful hedge funds in the industry, will be opening its first international office in Tel Aviv. Third Point Ventures, Third Point Ventures’ venture capital arm, will use it as a second hub in addition to its Menlo Park office, Silicon Valley, to search for investments in data infrastructure and enterprise software.
Third Point Ventures, run by Loeb Schwartz and Robert Schwartz (TPV), offers early-stage capital as well as hands-on support to prepare for a stock listing. Since 2015, it has made six investments in Israel, including one in cybersecurity companies. SentinelOne (NYSE:), and Verbit, an AI transcription-captioning company.
Loeb stated, “TPV’s presence in Israel is a natural extension our commitment to the country over many years. This was evidenced by previous early stage investments made from the hedge fund.”
Sapir Harosh is a former military intelligence officer who joined TPV from Israeli firm Pitango earlier in the year. He will be heading the Tel Aviv office.
Many U.S.-based Hedge Funds have had offices in London, Asia, and the United States for years. But Tel Aviv has recently become a magnet for investors looking to make new investments.
General Atlantic, a New York-based company, opened its Tel Aviv branch in April.
Although many hedge funds, such as Tiger Global Management or Coatue Management, have become prominent and publicly-funded players in the venture capital market, Loeb has mostly kept quiet about the investments in startups he’s made over the years.
Loeb is best known for his activist investment campaigns at companies like Nestle SA (SIX) and Walt. Disney (NYSE:) Co
and profitable credit investments, began highlighting the contributions of the venture team to the firm’s overall successes.
Third Point has raised its first dedicated fund of venture capital in 2021. It is currently seeking cash to fund its second venture fund, according a person familiar.
Third Point is suffering double-digit losses in 2022. This is due in part to a sell-off in technology stocks like SentinelOne. However, its TP Partners fund has provided an annualized return 16% over its 27 year lifetime. This compares to an average return of 9.3% for the.