Loeb says Dow Chemicals still under-earning in petrochemicals
BOSTON May 1 (Reuters) - Billionaire investor Daniel Loeb told clients that he thinks Dow Chemicals is still not making as much money as it can in its petrochemicals business and said that a recent drop in over inflated sectors was "painful" but "healthy."
In his quarterly letter, Loeb, who runs $14.3 billion Third Point, said some sectors were "exhibiting bubble-licious valuations" but that the U.S. economy is growing from its low levels in the first quarter.
He said corporate credit and mortgage investments helped the firm earn roughly half of its returns with Greek government bonds plus Ally Financial, Dow, Sony Corp and Cheniere Energy accounting as the firm's biggest winners in the first three months of 2014. SoftBank Sotheby's FedEx the Japanese Macro bet, were its biggest losers. (Reporting by Svea Herbst-Bayliss; Editing by David Gregorio)