. >> an interesting quarterly letter out from the top hedge fund performer, dan loeb.s increasing his position in international paper arguing that has a peling case for secular tail winds. they held this position late last year, a small percentage of their portfolio, but they're adding to it because they like the position in the container board industry. they also give rationally for why they got into virgin media. they say it was a cheap entry for liberty global and it's expected to take over v med at some point in a couple of months. they say generally they like european cable materially higher volume growth and a meaningful penetration offer relative to the u is. they talk about japanese macro which is a place they've seen favorable results from so far. the bank of japan is undertaking what amounts to a complete reboot of the japanese economy. and it's gone well for them so far. they plan to stay in that. finally he gives a market outlook and says in his view, the market is divided pretty evenly between bulls and bears, so is his portfolio. we see investors in two c

a notable exception is dan loeb, who once again showed his acumen on stock picking.n funds are all up on the year with a levered offshore fund, showing third-point ultra-. in march particularly loeb indicated from the nikkei's tear, but also with bets on yahoo, and the liquefied natural gas company. it will be interesting to hear how he picked those stocks. he's very good. >> i know dan a bit, nice guy, i like him a lot, big surfer. the other ones are underperforming the s&p 500, which i could buy for a quarter of a basis point. >> right. right. just by a hair. be fair, most of them are up 9 and change again an s&p that's 10. i think we have to give the guys a couple points a margin, because they are trying to pick unique opportunities. they're not just going with the benchmark, but s.a.c. is an interesting counterexample, up only about 4%. that's uncharacteristic for steve cohen. he's outperformed even with this legal overhang. he charges 3 and 50. >> 3 and 50? >> um-hmm. >> that's why his how has two golf holes or a basketball cart, or can buy la rev, all the while

my respect goes to the guys like dan loeb, paul tutor jones, lewis bacon, the hedge fund managers who really run hedge books, who are long, who are short, who make money in bull markets, make money in bear markets, and are not simply accruing wealth just because the fed is flooding reserves into the system and sending share prices higher. somebody who has to be both long and short, those are the guys i respect, and therefore, it's the paul joneses of the world that i look up to. >> i think that's a great point. and joe, isn't that really partially true there? i mean, if you're just long this market -- and look how great etfs have done. it's not active management, that's passive, you know, indexing. and of course you're going to be up. you're in a long bull market. but who are the guys that bet against housing in 2007? who were the guys that bet against dot-com in the 1999. you can't say that's luck. >> and those are the standouts. it's great about bill gross to come out and acknowledge that obviously credit expansion led tremendously to what happened in the market, and made it a lot e

carl icahn is involved, ackman is involved, dan loeb, one of the hot-trading stocks. turns out this thing is insider information. i'd like to know the inside information. i bet carl icahn and ackman would like to know. maybe a head start on these' counting disclosures before they are published. >> go ahead, jane. what have you got? >> reporter: well, according to scott london an what he's tell federal authorities, this did not impact the audits of herbalife at all, and he has said, to the authorities and so far they appear to believe him, that this was not a kpmg thing at all. >> he does not want kpmg to become arthur andersen and that's why he's thrown himself on the mercy of the court and admitted all. he says repeatedly this is not about them, and his attorney said there was, quote, relief on the faces of the federal agents when they finally contacted him and met with him approximately two weeks ago because they feared this was just the tip of the iceberg at kpmg and now according to london's attorney they know it was just one guy. >> all right. mitch epner, wrap m

dan lobe's third point fund continues to rip it. notably his ultrafund which is the levered offshore vehicle up 13.3% for the quarter. yes, you heard that right. big winners for loebere new positions. the gas supplier up ans a ston nishing 49% this quarter. loeb also did great with yahoo! japanese macro play. the nikkei's remarkable strength so far this year. david teper has been long japan, too, scott, which i'm told are real li good results although we don't have exact numbers yet. >> i want to know if underperformance in the hedge funds and chase foreperformance going forward is one of the things that could help the mafrkt, you know, obviously the bull case of why stocks would go higher. >> hedge funds have been cautious. they're hedge funds. if you're really long like lee is, up 9% for the quarter. i think -- well, the other you mentioned is because -- >> confidential there. >> but they have to get involved. the question is they're waiting for the market to correct. so many people talk about it before they put money? >> at what point do they say, to hell with it? this thing is not going to correct to where i thought it was and i have to get in? >> here's the p