BioFuel Energy
(NDAQ:BIOF) is a development-stage company formed to build and operate
a series of ethanol production facilities in the Midwest United States.
The company went public on June 20th of this year and has drew the
attention of investors today after Daniel Loeb's Third Point hedge fund
disclosed a massive 30 percent stake in the company.
The billion
dollar hedge fund manager has built up an impressive trackrecord
through not only his activist investments but also his passive ones. In
fact, his annual return since his fund's inception in 1995 stands at
around 28 percent. Therefore, any investment made by this man is one
that is definitely worth watching - particularly when it is a big bet
in an emerging industry!
So, what other clues do we have from
Daniel Loeb with regards to this investment? Well, all of their shares
were obtained in a private placement that closed in conjunction with
the initial public offering on June 19th. Notably, this placement
included a $1.2 million investment from Loeb's personal funds. We also
know that Loeb has sat on the company's board since May 2006, meaning
this shouldn't be a fly-by-night investment. Combined, these factors
make BIOF a stock worth
keeping an eye on over the next few months!
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