Third Point Offshore reports its full results for 2017

Third Point Offshore reports its full results for 2017 – Third Point Offshore (TPOG) is a feeder fund and invests all of its capital (net of expenses and short term working capital requirements) in Class E Shares of Third Point Offshore Fund Ltd (the “Master Fund”). The Master Fund’s investment objective is to achieve attractive returns by using an event-driven, bottom-up, fundamental approach to evaluate various types of securities throughout companies’ capital structures.

Financial Highlights

(as at 31 December 2017, unless otherwise stated)

Returns for USD class of 18.9% and GBP class of 18.1%

Ticker	Tranche	NAV FY17	NAV FY16	Return
TPOU	USD Class $	$20.25	$17.63	18.9%
TPOG	GBP Class £	£19.21	£16.84	18.1%

• The company’s NAV increased 15.4% to $1,014.4 million (FY16:$879.2 million)
• On 5 January 2018, an annual distribution was declared equivalent to 4% of the NAV of the company in respect of the year to 31 December 2017, amounting to $0.81 per USD share and £0.77 per GBP share

The investment manager’s bottom up security selection combined with a favourable economic backdrop due to factors including synchronised global growth delivered positive returns for the year.

The net investment results for the year were driven by contributions from all investment strategies, with the majority of returns attributable to equities investments across sectors and geographies. Performance was due to strong stock selection in event-driven situations, several large constructivist investments, successful short selling efforts, and maintenance of a well-balanced portfolio across sectors.

§ Within equities, core investments in Healthcare, Consumer, Industrials, and Financials contributed meaningfully to positive performance. Modest Corporate, Structured, and Sovereign Credit portfolios also added to gains for the year.

Outlook

The investment manager capitalised on favourable equity market conditions in 2017 by allocating an average of 65% of exposure to the asset class.

The investment manager remains focused on macroeconomic and market risks including the shifting dynamics between global growth and inflation.

The investment manager will continue to invest in  investment opportunities in both long and short equity positions and expects credit exposure to remain modest in the current environment. It will adjust portfolio exposures to changing market conditions and macroeconomic data.

Chairman’s comment

Marc Antoine Autheman, chairman of Third Point Offshore Investors, commented:

 “I am pleased to report a strong performance from Third Point Offshore Investors for 2017 with significant NAV growth throughout the period. This was driven by the Investment Manager’s ability to allocate flexibly across the capital structure and among different strategies, to identify optimal value and produce excellent returns.”

The board and investment manager recognise the company’s persistent share discount to NAV and believe that TPOIL’s transfer to a premium listing and the potential for an opportunistic share purchase programme will help to reduce this. We are fully committed to ensuring that the Company is best-positioned to deliver long-term value for all shareholders.”