Value Investing

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