Third Point Investors extends buyback programme as underperformance persists
Third Point Investors’ NAV fell by 3.8% in the six months to June, compared to a 15.4% gain for the MSCI World index and a 16.9% rise for the S&P 500 index.
In its interim half-year results, the board said today (22 September) it would continue its previously announced buyback programme, authorising up to a further $25m over the period to April 2024.
During the first half of 2023, the trust bought back approximately 1.2 million shares, equivalent to $23.7m in value, adding $0.18 to NAV. The board allocated a further $50m to buybacks in September last year, with $5m of the capacity unused.
Third Point Investors hit by long equity exposure in 'bruising' 2022
The board added it would hold tender offers in April 2024 and April 2027, each for 25% of the outstanding shares at a discount of 2%, if the discount is wider than 10% and 7.5%, respectively, in the preceding six-month periods.
If the 2024 tender is fully subscribed, and assuming no exits from the trust's private portfolio, its private exposure will increase to 12% from the current level of 8%, the board noted, which would increase further through buybacks.
In a research note, Numis analysts Ash Nandi and Gavin Trodd said they believe the upcoming discount triggered tender offer, for 25% of share capital at a 2% discount to NAV «may act as a catalyst for a rerating», supported by an extension to the funds buyback programme.
Third Point Investors, the £500m London-listed closed-ended fund, which invests directly in Daniel Loeb's flagship hedge fund, saw its NAV fall by 3.8% in the six months to June, compared to a 15.4% gain for the MSCI World index and a 16.9% rise for the S&P 500 index.
Share price total returns fell by 4.5%, as the trust's discount widened from
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