As somebody who tends to back investors vs being a primary investor myself – shame on me for not knowing that Third Point has a public sleeve of their master fund. It is currently ~90/10 liquid vs illiquid / private investments going up to 80/20 this year. It also incorporates a variety of strategies (e.g., structured credit, VC, event driven, etc.). Perhaps most important is investment performance has endured while Third Point’s cohort of value investors has died out for the most part.
Like most publicly traded fund vehicles – it trades at a material discount to NAV – in this case ~15% today. It does seem to me that other investors obsess over NAV discounts – they just seem like a feature of a vehicle structure vs something that needs to be fixed. Here’s a video of a guy pitching this name really hard.
The video brought up a one red flag – one being the large unrealized gains that may deal a large tax liability for a new investor that didn’t participate in those gains. Yuck.
Another way to participate in some way in Third Point’s fund is via SiriusPoint – the new iteration of Third Point Re. It trades at a fraction of book value and has its equity book in a levered version of Third Point’s master fund. That said – one is basically betting that the insurance operation can be turned around and may be juiced by TP’s investment performance, vs solely betting on TP’s investment skill.
Anyways – I’m keeping this Dan Loeb complex on the back burner as a potential opportunity. For now I continue to invest in companies that pay cash flow back to me while I keep building current income to support our lifestyle. Happy Wednesday.