There’s an interesting tussle going on at Third Point Investors (TPOS), where manager and activist investor Daniel Loeb is facing a taste of his own medicine.
Third Point Investors is an investment trust with assets worth £736m which listed on London Stock Exchange (LSEG) in 2007. It invests directly into Third Point’s largest hedge fund which is managed by Loeb in New York and, according to its website, has generated 15 per cent net annualised returns for investors since its inception in 1996.
An enduring frustration for the trust’s shareholders has been its persistently wide discount to net asset value (NAV) over the past three years, more often than not in excess of 20 per cent. As a result, activist investor Asset Value Investors has bought a stake and tried to persuade its board to take steps to narrow the discount.