Wed, Apr 23, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Q&A with Joe Taussig of Taussig Capital on Third Point Re's IPO

Monday, August 19, 2013

amb
Joe Taussig
Matthias Knab, Opalesque:

Third Point Re’s shares began trading on the New York Stock Exchange Thursday last week. While the 22 million shares offered in its IPO priced at $12.50 per share, which was the low of its range, 14 million shares traded on the first day and two million traded on Friday, where it closed at $13.30 per share, up 6.5% and a 10% premium to book value (Greenlight Re trades at an 11.7% premium to book value while Swiss Re, XL, Axis, AWACS, and Validus all trade at discounts to book value).

Recently, Joe Taussig of Taussig Capital appeared on Opalesque TV and told us why 14 major asset managers (including Buffett, Soros, Einhorn, Loeb, Cohen, and AQR) had acquired or started reinsurance companies. We asked him for his thoughts on the Third Point Re IPO.

Taussig: Pricing an IPO is always more of an art than a science. It appears that the investment bankers got it more or less right. The day it priced, there were fears that the Fed would ease off on its bond buying. As such, the S&P 500 dropped 2% the two days that TPRE has traded. Consequently, the pricing and amount were at the low of its range.

Despite these head winds, nearly 2/3rds of the offering trading on the first day and 10% on the second day, and it appears that price discovery at around $13......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. …And Finally – Flight attendant has passengers rolling in aisle[more]

    From Orange.co.uk: A video of a US flight attendant turning her safety talk into a comedy routine is proving a huge hit online. More than five million people have watched the clip of Marty Cobb which has her passengers rolling with laughter on a Southwest Airlines flight to Salt Lake City.

  2. Niche Investing – Wealthy investors flock to fine art funds[more]

    From Clickorlando.com: Wealthy investors looking to diversify beyond stocks and bonds are now turning to an unusual money-making vehicle -- the art investment fund. The name says it all: These funds invest in fine art and seek returns by acquiring and selling high-end pieces for profit. Growth

  3. University of Michigan allocates $242m to six managers[more]

    From PIonline.com: University of Michigan, Ann Arbor, invested or committed a total of $242 million to one traditional equity manager and five alternative investment funds from its $9 billion endowment. University regents approved the hire of Mittleman Investment Management to run $35 million in act

  4. Performance – Odey flagship hedge fund suffers brutal March as shorts rise, Blackstone first-quarter profit rises 30% on higher fees[more]

    Odey flagship hedge fund suffers brutal March as shorts rise From Valuewalk.com: The tide has turned for the worse for one of Europe’s best performing hedge funds. Crispin Odey’s flagship hedge fund, Odey European has suffered a 4.63% decline for the year after slipping 7.2% in March, ac

  5. Agecroft Partners estimates 90% of hedge funds using social media[more]

    The use of social media has increased significantly within the hedge fund industry over the past couple of years. Social media is broadly used by investors as part of their due diligence process on hedge funds, by service providers in their sales efforts to hedge funds, and by hedge funds to enhance