You can buy stock in Dan Loeb’s in­surance com­pany, but don’t ex­pect Third Point re­turns

Hedge funds and in­sur­ers have a spe­cial re­la­tion­ship Money man­agers “es­sen­tially view it as per­ma­nent cap­i­tal”

Bloomberg Businessweek (Asia) - - CONTENTS -

Dan Loeb, man­ager of Third Point hedge fund, is also a co-founder of the pub­licly traded, Ber­muda-based in­surance com­pany Third Point Rein­sur­ance. The stock has had its ups and downs, but it’s al­ways pro­duced at least one win­ner: Loeb’s hedge fund com­pany. Since 2013 the in­surer has paid $98.8 mil­lion in fees to Third Point and its af­fil­i­ates for man­ag­ing its money.

David Ein­horn, known for his Green­light Cap­i­tal hedge fund, has a sim­i­lar ar­range­ment. Cay­man Is­lands­based in­surer Green­light Cap­i­tal Re has paid more than $280 mil­lion since 2007 in man­age­ment and per­for­mance fees to Ein­horn’s DME Ad­vi­sors, whose in­vest­ments mir­ror those of the Green­light fund.

Third Point Re has pitched its stock as a way to ben­e­fit from Loeb’s in­vest­ing acu­men. While

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