New York, Aug. 6 - Daniel Loeb's hedge fund, Third Point, told investors on Friday that it had made a new bet to the retailer RH and is urging management at Walt Disney Co to do more to unlock the full potential of its streaming service.
Loeb wrote in a letter to investors, which was seen by Reuters that he is confident RH, previously known as Restoration Hardware, will deliver quick earnings growth and expand abroad under the guidance of Chief Executive Gary Friedman, whom he called a 'one-in-a-generation leader'.
The billionaire investor also urged Disney's management team to take more action to maximize the potential of its streaming platform, suggesting an all-you-can-eat approach to its direct-to-consumer offering.
Loeb, who has often been critical of chief executives, praised Disney's leaders for past actions, including the suspension of the company's dividend in the first half of fiscal 2020.
His investment in Disney, unveiled about a year ago, has worked back, said Loeb, as his optimistic view of Disney streaming service was being proven correct. 'While the progress thus far has been commendable, even more can be done to realize Disney's full potential in streaming, Loeb wrote.
Loeb and his team have impressed Disney's Chief Executive Officer and chief financial officer with their relentless pursuit of long-term value creation and have done what is right for customers.
But establishing a durable leadership position in the competitive global streaming market will require rigorous choices, strong investment, aggressive focus and consistent innovation, he wrote.
Third Point gained 15.2% in the first half of 2021.