Dan Loeb’s hedge fund, Third Point, is actively evaluating “credible strategic options” to address a significant discount between its share price and the value of its underlying assets amid pressure from activist investors, according to a report by CityAM.
The firm initiated a strategic review earlier this year appointing activist investors Dimitri Goulandris and Liad Meidar to its board in April to tackle the persistent valuation gap. The strategic review committee, which also included existing director Richard Boléat, has explored a range of measures, including mergers and shifts in investment strategy, to close the disparity.
Currently, Third Point’s share price trades at a 24% discount to its net asset value (NAV), widening from the 18% gap when the review was launched. Despite the valuation challenge, the fund has delivered strong performance in 2024, with its NAV up 26.9% year-to-date and its share price climbing 25.5%.
While Third Point has not disclosed specific details, the firm announced that one option is being pursued “expeditiously,” with its feasibility set to be assessed by the first quarter of 2025. Any proposed changes will be presented to shareholders for approval following the review’s conclusion.
“A further update on the strategy review will be provided in early April 2025,” the board stated.
This isn’t the first time Third Point has faced pressure from activist shareholders. In 2021, Dan Loeb openly criticised their influence, referring to them as a “stain” and accusing them of “juvenile antics.” That same year, then-chair Steve Bates resigned, citing personal threats from activists.
