Staude Capital accuses Dan Loeb’s Third Point of ‘Trumpian theatre’

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Miles Staud is the second shareholder to publicly criticize the management of Third Point Investors, a feeder fund to Loeb’s US hedge fund.

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An extraordinary dispute between Third Point Investors and disgruntled shareholders escalated today as a second supporter broke cover to Blast Management.

Miles Staud of Staud Capital published an open letter to fellow shareholders accusing the third point of “Trumpian theater” and sluggish corporate governance. He has been lobbying behind the scenes for months.

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In his letter, Staud accused New York hedge fund boss Dan Loeb, which manages Third Point’s money, of exploiting the structures of his UK feeder fund to railroad through the approval of director Joshua Targhoff in a vote last month. to do

Staud supported a vote on Targhoff’s position as a proxy for proposed changes to the way the fund was managed. The proposal was defeated but Staud argues that it was only thanks to the support of a neutral voting bloc that aimed to protect the fund from US jurisdiction.

Staud claims that Block was influenced by Loeb and accused him of using it as a “backdoor route for US corporate governance practices to make their way into the London market”. He called it ‘shameful’.

A spokesman said Third Point Loeb “strongly denies” any claims that the voting bloc may have been affected. Shareholder advisory groups Glass Lewis and the ISS both supported Targhoff ahead of the vote.

Staud is the second third point investor to publicly explode the regime. Asset value investors have campaigned for change over the months.

The pair is troubled by the difference in value between Third Point’s asset and its share price. They are pushing for a new mechanism to do away with the exemption. Third Point, which is known for its own proactive campaigns and is currently targeting Shell, insists it is tackling the issue with its plans.

Third Point chair Steve Bates unexpectedly resigned last month. The fund claimed that activists made threats against him that destabilized his position, and Loeb said the activists targeting Third Point were “juveniles”.

Staud in his letter refuted the claim, saying: “Did we challenge the directors of TPIL to a meeting behind the school’s toilets? Did we threaten to take advantage of their lunch money? No.

“We have made the clear case that, within the UK, directors will be held accountable for their corporate governance track record, and we will shine a bright light on their behavior if directors ignore the wishes of their common shareholders.”

Staud publicly challenged the three remaining board members to respond to his allegations, saying there was “a tacit silence on the part of the directors”.

Not all investors are against management. John Armitage of Egerton Capital, Third Point Investors’ third largest shareholder, said: “Dan Loeb and his team are great investors and TPIL is a super, tax-efficient, simple vehicle for UK investors.

“As the owner of TPIL, I am satisfied with the steps taken by the Board with relaxation controls and performance, and I believe that disgruntled shareholders should sell their positions rather than distract the Company with its pointless stunts “

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