Dan Loeb's TPP for 16% off

Discussion in 'Stocks' started by billyjoerob, Jun 19, 2010.

  1. piezoe

    piezoe

    Mr. Loeb does rather well. Rather too well in fact. No thank you.
     
    #11     Aug 31, 2010
  2. TPOU NAV is now at 10.67, the shares trade at 8.59 ask. I think getting $2 off a decent hedge fund is a good deal, Loeb should beat the market by a decent margin over the next 5 years. I'm putting half my IRA in Loeb . . . even a return to NAV generates a 25% return, not to mention growth in NAV. Have to buy this in a tax protected account, it may be illegal to own it in a taxed account.
     
    #12     Oct 22, 2010
  3. #13     Dec 10, 2010
  4. I remember when I used to read hedge fund letters a while back. I believe it was the letter when he admits that the feds are circling (this was 2-3 years ago) looking for dirt on him and his fund. Then they were 20-30% below NAV.

    He explicitly told people in the letter not to use the information and try to arb the fund. I guess being traded on an exchange, you could have bought up his fund and been 100% hedged with the underlying for a longer term arb. But since its non-public info, you "couldn't" (i.e he would go after you with his tie around his head)
     
    #14     Dec 10, 2010
  5. Nice find, wish I had seen this earlier. At a 15% discount, you will earn 118% of his actual NAV return.
     
    #15     Dec 11, 2010
  6. There are a ton of sellers between here and $10, that's where the fund came public. But over $10 should be smooth sailing, the discount could narrow quickly.
     
    #16     Dec 11, 2010