Dan Loeb explains how he got fooled by Sam Bankman-Fried and profited from Elon Musk

Hedge‑fund manager Dan Loeb said Third Point was fooled by Sam Bankman‑Fried’s FTX — a lesson that has tightened his due diligence — but highlighted successful trades such as buying Twitter’s distressed debt (around 96–97¢ on the dollar, ~12% yield) and later profiting when xAI financing stabilized. Loeb expressed a bullish outlook on AI-related equities, noting Nvidia and the AI sector as the firm’s largest allocation and calling it “the most attractive sector” now. Market impact: Loeb’s comments reinforce institutional demand for AI equities while underscoring continued caution around crypto counterparties and the importance of cash‑balance checks after FTX.