Third Point Reinsurance Ltd (NYSE:TPRE)’s has a new investor presentation, which can be viewed below. See Third Point Q3 letter to investors here.
Market-Leading Investment Management
- Third Point LLC owned and led by Daniel S. Loeb
- 21.1% net annualized returns since inception in 19955
- Risk-adjusted returns driven by superior security selection and lower volatility
Relationship With Third Point LLC
Investment Management Agreement
- Exclusive relationship through 2016, 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 the standard 2% 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 diversify portfolio to address concerns of A.M. Best or regulator(s)
Liquidity
- Investments are held in a separate account – Third Point Re has full ownership of investment portfolio to provide liquidity for claims and expenses
- More than 95% of investments are within FAS 157 Levels 1 & 21
- Separate account may be used at any time to pay claims and expenses
Third Point LLC Portfolio 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
See full Third Point Investor Presentation here.
