The launch of Dan Loeb's permanent capital vehicle looks to
have been poorly timed, with performance down and no mechanism
to limit the shares from trading at a discount
By Eric Baum
Dan Loeb's Third Point Management may have picked the wrong
time to be a pioneer. Not only did the initial public offering
of his hedge fund fall short of its fundraising target; shares
have also declined more than 10% since trading began on July
20. Loeb, who loves to attack corporate chieftains for their
abuse of investors, now has to take some of his own medicine.
As it turns out, aspects of Loeb's fund structure are much less
investor friendly than some of its European peers.
Third Point Offshore Investors Limited was launched on the
London Stock Exchange with $525 million in separate dollar,
euro and sterling share classes. Shares in Third Point, the
second-largest such listing on...