James Elbaor, founder and CIO of Marlton Capital, discusses his investment thesis for Third Point Investors (TPOU; trades in London).
TPOU is a closed-end investment company that invests into Third Point, Dan Loeb's hedge fund. TPOU consistently trades at a discount to NAV, and James thinks the combination of Third Point's investing prowess and TPOU's innovative buyback/tender mechanism creates a unique opportunity to generate attractive returns.
James' Twitter: https://twitter.com/jameselbaor
Asset Value's May 26, 2021 activist letter to TPOU: https://www.assetvalueinvestors.com/content/uploads/2021/05/AVI-Open-Letter-to-TPIL-Vote-Co_2.pdf
1:30 TPOU Overview
3:55 Why invest in TPOU instead of Third Point directly?
7:00 Third Point's return profile, past and forward looking
14:20 TPOU's discount and unique tender mechanism
17:30 Laying out a base case IRR to a potential March 31, 2024 tender
27:30 Pushback #1: Doesn't this deserve a discount given the fee structure?
34:25 Pushbuck #2: The corporate governance issues raised by Asset Value's letter
43:30 TPOU tax consequences for U.S. investors
45:05 Final thoughts on TPOU
50:00 Quick hit on Third Point / Vivendi / PSTH / UMG