At the start of the year, it wasn't an entirely obvious play. Going into 2013, Yahoo! was trading around $20 -- up from $14 when Marissa Mayer was hired as CEO six months earlier and up from $11 about 18 months before when activist investor Dan Loeb first built a position in the company.
There were many market observers who said the "easy money had been made" in Yahoo!.
Then, midway through the year, Dan Loeb surprised everyone by leaving the Yahoo! board and reduced the size of his position in the company by two-thirds when the stock price was $29. The howls from observers was that anyone else holding Yahoo!'s stock was "dumb money." These observers instructed people to immediately sell Yahoo! or risk being a bag holder. It turned out to be laughably bad advice.
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