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Dan Loeb's TPP for 16% off
- Thread starter billyjoerob
- Start date
TPOU NAV is now at 10.67, the shares trade at 8.59 ask. I think getting $2 off a decent hedge fund is a good deal, Loeb should beat the market by a decent margin over the next 5 years. I'm putting half my IRA in Loeb . . . even a return to NAV generates a 25% return, not to mention growth in NAV. Have to buy this in a tax protected account, it may be illegal to own it in a taxed account.
NAV now at 11.16, shares trade at 9.45 ask.
Third quarter letter.
http://www.thirdpointpublic.com/default.asp?P=520291&S=520293
Third quarter letter.
http://www.thirdpointpublic.com/default.asp?P=520291&S=520293
I remember when I used to read hedge fund letters a while back. I believe it was the letter when he admits that the feds are circling (this was 2-3 years ago) looking for dirt on him and his fund. Then they were 20-30% below NAV.
He explicitly told people in the letter not to use the information and try to arb the fund. I guess being traded on an exchange, you could have bought up his fund and been 100% hedged with the underlying for a longer term arb. But since its non-public info, you "couldn't" (i.e he would go after you with his tie around his head)
He explicitly told people in the letter not to use the information and try to arb the fund. I guess being traded on an exchange, you could have bought up his fund and been 100% hedged with the underlying for a longer term arb. But since its non-public info, you "couldn't" (i.e he would go after you with his tie around his head)
Nice find, wish I had seen this earlier. At a 15% discount, you will earn 118% of his actual NAV return.
There are a ton of sellers between here and $10, that's where the fund came public. But over $10 should be smooth sailing, the discount could narrow quickly.