London Didn’t Relax Its Governance Rules for Dan Loeb’s Benefit
Eased listing standards are helping the activist merge his UK investment trust with an insurance venture. Ordinary shareholders deserve an alternative.
Another bridge to cross.
Photographer: Jason Alden/Bloomberg
Last year’s relaxation of the UK listing regime left investors more reliant on company boards to protect them from dominant shareholders. That safety mechanism is now being tested at the London-listed investment vehicle of hedge fund manager Dan Loeb.
Third Point Investors Ltd. (TPIL) invests shareholder capital in the main strategy of Loeb’s US-based hedge fund Third Point LLC. The idea is that UK investors get access to Loeb’s expertise, with the daily liquidity of a tradable stock. But like other “closed-end funds,” TPIL trades at a discount to its net asset value. The gap’s recently been around 20%.