Dan Loeb, founder of hedge fund Third Point, has reflected on contrasting investment outcomes: a $60 million loss in FTX and profitable debt positions in Elon Musk's ventures. Third Point's Q4 2025 investor letter highlighted the success of investments in Musk's X and xAI, driven by a merger with SpaceX, as significant contributors to the fund's performance. In contrast, the FTX investment, made during its peak in 2021, resulted in a total loss following the exchange's collapse and Sam Bankman-Fried's conviction. Loeb's experience with FTX serves as a cautionary tale, while his strategic debt investments in Musk's companies underscore a successful pivot. Unlike equity, debt investments offer a different risk profile, ensuring returns as long as the company remains solvent. The merger between xAI and SpaceX has further bolstered Third Point's portfolio, showcasing the potential of Musk's ventures.