Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Third Point returns investor capital (some)/reduces exposure amid economic concerns
Third Point RE (TPRE) is a reinsurance company with the float invested in Loeb's hedge fund.
Before people complain about hedge funds and performance, Third Point has done quite nicely.
Additionally, not even saying this is that negative, more just interesting coming from a hedge fund manager whose track record is impressive (and has been consistently so.)
I have noticed that the pink sheets trading in Loebs Hedge fund TPNTF have done really well this year. Any word on the reinsurance vehicle for the other big hedge fun managers.
I like that there are hedge fund managers out there with ethics like Dan Loeb and Seth Klarman. Returning investors money because they don't see as much opportunity and not just investing it to collect a fee.
Reply to @chrisblade: TPNTF has done well, but it is illiquid and barely trades on the US market. The London shares also have barely any volume. Additionally, that fund traded at something like a 50% discount to NAV at points in 2008/2009 lows. It's probably still at a discount to NAV, but nothing that insane.
People have a lot of faith in Greenlight RE (GLRE), but it is - in my opinion - a reinsurance play first, a reinsurance play second and sorta a hedge fund play third. It moves very much along with the reinsurance industry and the reinsurance success (or lack of) of Greenlight RE. It is not going to track Greenlight the hedge fund.
I'd guess Third Point RE is probably going to be similar over time.
That's not to say that Third Point RE and Greenlight RE aren't interesting investments to some degree, but I think someone expecting either to track the performance of the underlying hedge funds reasonably closely are going to be disappointed.
Fairfax Financial (FRFHF.PK) is an interesting company, with Canadian Buffett at the helm. That is an insurance company where Prem Watsa does the investing. While not exactly successful lately with Blackberry, Watsa has a solid long-term record, including betting against financials and subprime in 2008.
Power Corporation of Canada (PWCDF.pk) can invest in private equity and hedge funds. It is something of a vehicle for one of Canada's wealthiest families. The company is primarily a financial company and owns a significant stake in Swiss conglomerate Pargessa, but a bit is devoted to hedge funds and private equity.
There's been some mutual funds that have allowed exposure to some degree to private hedge funds, but I don't think I've seen one of much interest (yet.) T Rowe Global Allocation can devote 10% to such vehicles.
Scott, thanks for the input. While alternatives don't make up the bulk of my investments, probably only 10% it is great to have ideas to bounce around. I think it is too much to hope for some deregulation ala UK in regards to listing and access.
Comments
People have a lot of faith in Greenlight RE (GLRE), but it is - in my opinion - a reinsurance play first, a reinsurance play second and sorta a hedge fund play third. It moves very much along with the reinsurance industry and the reinsurance success (or lack of) of Greenlight RE. It is not going to track Greenlight the hedge fund.
I'd guess Third Point RE is probably going to be similar over time.
That's not to say that Third Point RE and Greenlight RE aren't interesting investments to some degree, but I think someone expecting either to track the performance of the underlying hedge funds reasonably closely are going to be disappointed.
Fairfax Financial (FRFHF.PK) is an interesting company, with Canadian Buffett at the helm. That is an insurance company where Prem Watsa does the investing. While not exactly successful lately with Blackberry, Watsa has a solid long-term record, including betting against financials and subprime in 2008.
Power Corporation of Canada (PWCDF.pk) can invest in private equity and hedge funds. It is something of a vehicle for one of Canada's wealthiest families. The company is primarily a financial company and owns a significant stake in Swiss conglomerate Pargessa, but a bit is devoted to hedge funds and private equity.
There's been some mutual funds that have allowed exposure to some degree to private hedge funds, but I don't think I've seen one of much interest (yet.) T Rowe Global Allocation can devote 10% to such vehicles.
The Brooklyn Investor has written some good notes on GLRE, including this:
http://brooklyninvestor.blogspot.com/2013/02/what-glre-is-worth-to-einhorn.html