Third Point Investor Presentation

Excerpt from Third Point Re’s investor presentation for the month of September 2018, discussing their “market-leading investment management.”

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Q2 hedge fund letters, conference, scoops etc

Market-Leading Investment Management By Third Point LLC

  • Third Point LLC owned and led by Daniel S. Loeb
  • 18.4% net annualized returns for Third Point Partners LP since inception in 1995
  • 10.0% net annualized return on TPRE managed account since inception (Jan. 1, 2012)

Market-Leading Investment Management By Third Point LLC

Investment Returns Profile

Market-Leading Investment Management By Third Point LLC

Relationship With Third Point LLC

Limited Partnership Agreement

  • Exclusive relationship through 2021, followed by successive 3-year terms on renewal
  • Investments are managed on substantially the same basis as the main Third Point¬† LLC hedge funds
  • We pay a 1.5% (exposure adjusted) management fee and 20% performance allocation. The performance allocation is subject to a standard high water mark

Risk Management

  • Restrictions on leverage, position concentrations and illiquid, private investments
  • Key man and performance termination provisions
  • Allowed to dwersnfy portfolio to address concerns of AM. Best or regulator

Liquidity

  • Weekly redemption rights to pay claims and expenses as well as manage required capital
  • Portfolio concentrated in large cap Iong equity positions
  • No material changes in liquidity by moving to fund structure

Third Point LLC Portfolto Risk Management

  • Portfolio diversification across industries, geographies, asset classes and strategies
  • Highly liquid portfolio - investment manager can dynamically shift exposures depending on macro/market developments
  • Security selection with extensive diligence process
  • Approach includes index and macro hedging and tail risk protection
  • Institutional platform with robust investment and operational risk management procedures

thirdpoint



About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver