REG-Third Point Investors Ltd: Third Point Publishes Q4 2024 Investor Letter

Third Point InvestorsAnnouncement

05/02/2025 07:15

5 February 2025

Third Point Publishes Q4 2024 Investor Letter

Third Point LLC, the Investment Manager of Third Point Investors Limited
(“TPIL” or the “Company”) announces that it has published its
quarterly investor letter for Q4 2024. The full letter can be accessed at the
Company’s website:
https://www.thirdpointlimited.com/resources/portfolio-updates

Highlights:
* Third Point’s flagship Offshore Fund (the “Master Fund”) achieved a
9.1% gain in the Fourth Quarter and 24.2% for the full calendar year. 
* Returns for the full year were driven by positive results across all
strategies, including equities, corporate and structured credit, and privates.

* Third Point LLC (“Third Point” or the “Investment Manager”) outlined
its view on the macroeconomic environment as well as several portfolio
positions, including Brookfield, Live Nation, Siemens Energy, and Pacific Gas
& Electric. It also provided updates on the corporate credit and structured
credit portfolios, as well as the recent acquisition of AS Birch Grove, a
diversified alternative credit fund manager.
Performance Key Points:
* Third Point returned 9.1% in the Master Fund during the Fourth Quarter of
2024, bringing the year-to-date return to 24.2%.
* The top five positive contributors for the quarter were Siemens Energy AG,
Amazon.com Inc., Tesla Inc., LPL Financial Holdings Inc., and Apollo Global
Management Inc. 
* The top five negative contributors for the quarter were Danaher Corp.,
Glencore PLC, Ferguson Enterprises Inc., Intercontinental Exchange Inc., and a
short position.      
Outlook and Market Commentary:
* Returns for the full year were broadly positive across Third Point’s
strategies, including equities, corporate credit, structured credit, and
privates. 
* Throughout the year, Third Point highlighted its diversified portfolio of
equity investments, some with event-driven catalysts, others with quality
characteristics, and several idiosyncratic themes that differentiated returns
from that of key indices. 
* As market returns broadened out during the second half of the year, Third
Point believes it was well positioned to take advantage, with successful
rotation into consumer discretionary, financials and industrials names helping
it to capture the upside of the post-US election rally. 
* Moving forward, the Investment Manager believes that the intersection of
economics and policy has made employing second-order thinking important,
especially with regards to news headlines and policy declarations. Recent
examples where nuanced analysis was required include the recent interest in
DeepSeek, a Chinese AI assistant, and Donald Trump’s initial tariff
pronouncements.
* Overall, Third Point expects the environment for investing in equities to
continue to be favourable, with the caveat that there will likely be periodic
dislocations caused by the unconventional approach of this Administration in
conveying and enacting policy that affects markets and the economy. 
* The Investment Manager remains optimistic about the sectors that will
benefit from certain of these policies, as well as an increase in M&A and
other corporate activity which supports its event-driven framework.  
Position Updates
* Brookfield	* The Investment Manager implemented a position in Brookfield
Corp. last summer. Third Point believes Brookfield is uniquely positioned to
be a beneficiary of the secular growth tailwinds around infrastructure, where
it is the preeminent global franchise, and private credit, where it is a top
player with $250 billion in fee-earning credit assets. 
	
* Live Nation Entertainment	* Third Point initiated a position in Live Nation
Entertainment in Q2 2024. It saw what it viewed as an attractive entry point
after the shares fell on news of an antitrust lawsuit from the US Department
of Justice. The Investment Manager believes the antitrust fears are overblown,
and that the company can compound earnings through the next decade, driven by
strong demand for concerts, robust pricing power, and a sizeable opportunity
to reinvest in owned and operated venues. 
	
* Siemens Energy	* Third Point established a position in Siemens Energy in
late Q3 2024. Missteps in its wind business have depressed the stock price
despite favourable fundamentals in the company’s other business segments.
Third Point believes that the wind issues were adequately provisioned for,
which will allow the resurgent gas turbine business and secularly growing grid
technology business to drive results. 
	
* Pacific Gas & Electric Co.	* While Pacific Gas & Electric had no direct
involvement or exposure to the recent Los Angeles wildfires, the stock has
reacted negatively to these developments. We believe Pacific Gas & Electric
meanwhile has been an advocate for undergrounding, which we believe is the
only way to permanently eliminate wildfire risk from grid assets. The stock is
now trading at the same multiple as the California utility company that does
potentially have exposure to these wildfires despite zero potential financial
liability. The investment manager expects more clarity from the state of
California over the coming weeks and months.
Credit Updates
* Corporate Credit	* Third Point’s corporate credit portfolio outperformed
the high yield index for the full year, with strong performance in the Fourth
Quarter due to strong performance from telecom positions as well as the
government-sponsored enterprises, Fannie Mae and Freddie Mac. 
* The Investment Manager believes it will see more opportunities in distressed
situations with the rise of Liability Management Exercises, which involve an
out-of-court exchange offer where a sponsor is seeking the reduce the
principal amount of debt, reduce interest expense and/or extend maturities.  
	
* Structured Credit	* Positive returns in structured credit were driven by
three major themes: strength in demand for exposure to residential mortgages,
a focus on secondary trading of risk, and credit spread tightening in
asset-backed securities. 
* Third Point expects M&A activity to increase in 2025, which will likely
result in more banks selling consumer and mortgage loan portfolios.   
Acquisition of AS Birch Grove
* In December, Third Point announced its acquisition of AS Birch Grove, a
diversified alternative credit fund manager with approximately $8 billion of
AUM. Birch Grove’s funds include a well-established CLO business with over
$5 billion in AUM, a private credit offering that complements Third Point’s
current skillset, a credit solutions product, and several other strategies.
* Birch Grove’s CEO/CIO Jonathan Berger will become Third Point’s Co-Head
of Credit alongside Partner Ian Wallace. Ian and other existing credit
professionals at Third Point will maintain their existing roles and work with
Jonathan and Daniel Loeb to develop new credit products reflecting the
firms’ complementary strategies. 
* The Investment Manager anticipates significant synergies between Third
Point’s newly created private credit effort and Birch Grove. It also expects
that Birch Grove’s CLO business, focused on tradeable term loans, will help
Third Point’s existing structured and corporate credit efforts by providing
a window into over 400 leveraged loans that can serve as an early warning
system for potentially stressed and distressed opportunities.
Press Enquiries

 Third Point                                                              Burson Buchanan              
  Elissa Doyle, Chief Communications Officer and Head of ESG Engagement    Charles Ryland              
  edoyle@thirdpoint.com                                                    charlesr@buchanan.uk.com    
  Tel: +1 212-715-4907                                                     Tel: +44 (0)20 7466 5107    
                                                                                                       
                                                                           Henry Wilson                
                                                                           henryw@buchanan.uk.com      
                                                                           Tel: +44 (0)20 7466 5111    

Notes to Editors

About Third Point Investors Limited

www.thirdpointlimited.com

Third Point Investors Limited (LSE: TPOU) was listed on the London Stock
Exchange in 2007 and is a feeder fund that invests in the Third Point Offshore
Fund (the Master Fund), offering investors a unique opportunity to gain direct
exposure to founder Daniel S. Loeb’s investment strategy. The Master Fund
employs an event-driven, opportunistic strategy to invest globally across the
capital structure and in diversified asset classes to optimize risk-reward
through a market cycle. TPIL’s portfolio is 100% aligned with the Master
Fund, which is Third Point’s largest investment strategy. TPIL’s assets
under management are currently approximately $600 million.

About Third Point LLC

Third Point LLC is an institutional investment manager that actively engages
with companies across their lifecycle, using dynamic asset allocation and an
ethos of continuous learning to drive long-term shareholder return. Led by
Daniel S. Loeb since its inception in 1995, the Firm has a 46-person
investment team, a robust quantitative data and analytics team, and a deep,
tenured business team. Third Point manages approximately $11.7 billion in
assets for sovereign wealth funds, endowments, foundations, corporate & public
pensions, high-net-worth individuals, and employees.



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