EMAIL DETAILS

Nothing. I thought I would wait until Tuesday and call him then. You will
be my first call once I hear anything.

Have a good weekend.

A

Arlene Busch
312-498-9595 (m)
202-333-1880 (w)


On Feb 7, 2014, at 4:37 PM, Chuck Harple <chuck@mmathisgroup.com> wrote:

Any news from Marc?

Chuck Harple
The Mathis Harple Group
923 15th Street, NW
Washington, DC 20005
202-662-9700 office
202-957-0042 cell
chuck@mmathisgroup.com


Please pardon any typos. Sent by iPhone.

On Feb 5, 2014, at 1:01 PM, Arlene Busch <abusch@rosemontseneca.com> wrote:

fyi


Arlene Busch

202-333-1880

abusch@rosemontseneca.com


*From:* Third Point Investor Relations [mailto:ir@thirdpoint.com]
*Sent:* Wednesday, February 05, 2014 12:06 PM
*To:* abusch@rosemontseneca.com
*Subject:* Today's Wall Street Journal


Dear Investor:

In light of recent media reports on the State of Rhode Island's planned
redemption, we thought you may be interested in reading an important
analysis of the issue from today's WSJ.

Sincerely,

Investor Relations
Third Point LLC
390 Park Avenue
New York, New York 10022
Tel: 212-715-6707
Fax: 212-318-3851
Email: ir@thirdpoint.com


------------------------------

*The Education of Gina Raimondo*

*A union vendetta against Dan Loeb punishes teachers and poor kids.*

Feb. 4, 2014 7:24 p.m. ET

It isn't easy being a reform Democrat these days. Witness the decision last
week by Rhode Island Treasurer Gina Raimondo, heretofore a hero of pension
reform, to buckle under pressure from the teachers union and dump a hedge
fund run by a supporter of education choice.

In 2011 Ms. Raimondo led a successful fight to reform the Ocean State's
broken pension funds, including a shift to a hybrid plan with a
defined-contribution component. But now she is running for Governor, and
her Democratic opponents are courting unions that want desperately to beat
the apostate reformer. And, lo, last week the Rhode Island State Investment
Commission she leads voted to divest state and local pension funds from
Daniel Loeb's Third Point LLC.

The decision is curious because Third Point happens to be the state's
top-performing hedge fund. Two years ago, the commission shuttled $50
million to Third Point in a broader push to meet the commission's target of
a 7.5% return on investment. Public pension funds nationwide have been
pouring into private-equity and hedge-fund investments as they chase higher
yields.

Third Point yielded 24.7% over the last year while the retirement system
returned 14%. Hedge funds as a class averaged 17.1%. If anything, the
commission ought to be sending more money Mr. Loeb's way, and retired state
workers ought to send him champagne.

So why the Raimondo heave-ho? The answer is union politics, specifically
opposition by the American Federation of Teachers to education reform,
especially school choice. Mr. Loeb and his wife are big donors to charter
schools, which is enough by itself to earn the wrath of AFT President Randi
Weingarten.

But the AFT put Mr. Loeb high atop the union's hedge-fund black list last
year because he also sits on the board of the New York chapter of
StudentsFirst, Michelle Rhee's education reform outfit that advocates
teacher accountability in part based on student achievement. He is also a
trustee of the Manhattan Institute, which favors school reform and in 2011
honored . . . Ms. Raimondo.

Mr. Loeb responded to the public union pressure last year by pledging an
additional $1 million in Ms. Weingarten's honor (on top of an original $2
million) to the Success Academy Charter Schools in New York City and
encouraging others to do likewise.

Ms. Weingarten hasn't forgotten, and she and her national enforcer Dan
Pedrotty have been leaning on Ms. Raimondo to pull the state's pension-fund
cash from Third Point. Last week she obliged. A spokeswoman for the
Treasurer says politics had nothing to do with the decision, which she says
was motivated by the commission's decision to reduce its "beta risk" (i.e.,
sensitivity to equity market moves). According to the Treasurer's office,
Third Point has the "highest equity market sensitivity" among the state's
hedge-fund investments.

But the commission was well aware of Third Point's beta risk when it
invested in January 2012. The spokeswoman says "the circumstance were
different then." That is, equities were flat, and they've since soared. Yet
if the commission were purely concerned with market risk and volatility, it
would be reducing its overall exposure to equities. Instead, the
commission's equity exposure has modestly increased.

It's hard to avoid the conclusion that Ms. Raimondo is trying to neutralize
union opposition by throwing Mr. Loeb over the side. But Ms. Raimondo is
fooling herself if she thinks that divesting from Third Point will atone
for her pension-reform heresy. The unions will still try to end her
political career. Ms. Weingarten wants to make an example of Ms. Raimondo
by showing other Democrats that favoring pension reform is politically
fatal.

And she wants to make an example of Mr. Loeb to every other hedge fund that
if you want union cash you'd better not support school choice or
defined-contribution pension reforms. Never mind that StudentsFirst of New
York's official position is that teachers should be able to choose between
defined-benefit or defined-contribution plans.

The larger and sadder irony is that Rhode Island's investment is chump
change in Third Point's $14 billion portfolio. Mr. Loeb doesn't need Rhode
Island's money, but poor students in New York and teachers in Rhode Island
need his. The teachers and public employees will now lose the benefit of
the higher returns that Third Point provides for their retirement. And the
poor kids will lose if other private-equity or hedge-fund owners lack Mr.
Loeb's fortitude and decide to stop contributing to charter schools or
reform outfits like Ms. Rhee's.

Ms. Raimondo is a politician, and politicians do what they feel they must
to get elected. But her cave-in speaks volumes about what is required for a
Democrat to succeed these days. Government unions run the show. Kids and
rank-and-file teachers be damned.


<WSJ 02-04-14 The Education of Gina Raimondo.pdf