Fri, Aug 29, 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

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. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing Square, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the

  2. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  3. Hedge fund assets decline in July - eVestment[more]

    Bailey McCann, Opalesque New York: Total assets in hedge funds declined in July and dropped 0.49%, marking the industry's second monthly asset decline in 2014, according to the latest asset flows data from eVestment. Despite the asset decline, total industry AUM remained above the $3 trillion

  4. AIMA makes 'the case for hedge funds'[more]

    Bailey McCann, Opalesque New York: The Alternative Investment Management Association (AIMA), the global hedge fund industry body,

  5. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest