Third Point Investors has published results for the year ended 31 December 2024. key highlights are as follows:

• The company returned 25.5% on a NAV total return basis and 28.7% on a share price basis. This represented an outperformance of the 19.2% return for the MSCI World Index and the 25.0% return for the S&P 500 Index over the same period.
• Returns were driven by positive results across all strategies, including equities (+20.3% gross contribution to the underlying Master Fund’s return), corporate credit (+2.2% gross), structured credit (+1.6% gross), and privates (+5.0% gross).
• Within equities, Third Point’s rotation into consumer discretionary, financials, and industrials names helped it capture the upside of the post-election rally in the US. The manager also benefited from its conviction that the AI theme would continue to drive value.
• Within credit, positions in cable and telecoms and residential mortgage exposures were the main contributors in the corporate and structured credit portfolios, respectively.
• Within privates, the key contributor to the positive return was Third Point’s position in R2 Semiconductor, which settled a dispute with another company and produced a significant gain.
• During Q1 2025, market sentiment began to shift to the fragility of global growth thanks to growing concern about US-imposed tariffs and cutbacks in government spending. Third Point was proactive in reducing its exposures starting in Q1 2025 and more recently in April when the Trump Administration’s reciprocal tariffs were first announced.
• While currently in a more defensive stance than where it ended the year, the manager believes caution is warranted given the disruption caused by constantly shifting narratives from policymakers. Third Point anticipates that these forceful swings in asset prices should present opportunities in equities and credit, so having additional cash to deploy may be beneficial.
• During the year the company bought back a total of 1.14m shares for a total value of $24.7m and at a weighted average discount of 23.1%. This added $0.35 per share to the NAV.
• In April 2024 the company held a redemption offer for 25% of outstanding shares at a 2% discount to NAV. This offer was fully subscribed and around 6m shares were redeemed in cash for approximately $158m.

On 22 April 2024, the board created a strategy committee tasked with conducting a strategy review to consider how the company may best deliver value to shareholders going forward. On 11 December 2024, the company announced that the committee had identified a compelling strategic option and that it would use the first quarter of 2025 to work expeditiously with its advisors to fully diligence this option to complete its assessment and present its detailed findings and recommendations to the board. Rupert Dorey, chair says: “The committee is pleased to confirm that it has made significant progress and is in the advanced stages of diligence and negotiations on this option. As announced in the strategy review update on 3rd April 2025, the committee currently expects to be able to recommend to the board that it puts forward its proposals to shareholders in May 2025. The board looks forward to engaging with shareholders on this option.”

TPOU : Third Point Investors celebrates successful year as it looks forward to outcome of strategy review