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