Activist hedge fund manager Daniel Loeb faces the challenge of his own frustrated investor in how he drives his UK-listed investment vehicle.
Loeb, known for campaigning against the management of companies like Sony և Sotheby’s, has been targeted by Asset Value Investors in London, which owns 10.1% of Third Point Investors Ltd.
TPIL is an investment trust led by Loeb, which was traded on the London Stock Exchange in 2007 and sold at a 17.5% discount on the value of its shares.
On Wednesday, AVI issued a letter complaining about TPIL’s performance և management, saying that the recent review of the strategy “sadly yielded to the structural changes needed to close the discount”.
After a tense webinar with investors in February, the public spat at a time when, according to AVI, Loeb said he would not want to make a quick buck in front of shareholders, trying to constrain or force the board or me to do something for all our investors in the long run. out of interest. “
Active investors like Loeb, who build stakes in companies, advocate for change, are often criticized for being short-lived.
AVI CEO Tom Trainer says Lobby’s comments are “remarkable for their hypocrisy and lack of self-awareness.” Treanor claimed that a five-minute tape had been cut from the recording of the call, including Loeb’s sharpest remarks, which were later circulated to investors.
“The removal of these comments from the official post of the third point suggests that either Mr. Loeb was ashamed of his unprofessionalism, undesirable sincerity, his views on shareholder rights, corporate governance, or his marketing team was ashamed of their boss.” He said.
AVI Global, which 1, 1.2 billion is trusted by AVI Global, is well known in London investment credentials for buying discounted cars and then trying to get management to close the gap, which widens AVI. value of shares.
“TPIL Board welcomes its partnership with its shareholders, as our recent Strategic Review has shown, and appreciates their views,” the company said in a statement to the Financial Times.
TPIL, which has a total asset of $ 900 million, allows investors to access the Loeb Third Point offshore hedge fund.
The UK Investment Trust was set up by Loeb in 2007 amid the urgency of fund managers to raise more stable capital, հաճախ investors often agree to close their cash for years. Other hedge fund managers, including Bill Ackman’s Pershing Square and Brian Howard, followed suit.
The AVI campaign focuses on a steady decline in TPIL stock prices over its net assets over several years. According to Morningstar, the gap averaged 16 percent last year.
The TPIL Board completed a strategic review in April to address the discount. The board offered to allow investors to cash in through a tender offer in 2024 if the trust is still going at a significant discount. They also forecast the fund’s impact on private equity to be around the current level of about 7% to 20%.
AVI argues that TPIL should change its structure, allowing investors to repurchase their shares at prices close to net asset value on a quarterly basis, and requires a general meeting to consider the measurement.
Rising markets have boosted TPIL shares, along with a narrowing of the discount from its widest point of about 30% last year, է stock prices are at an all-time high.