Asset Value Investor vows to continue Third Point fight as Loeb’s vehicle slams ‘self-serving’ activist

The activist investor targeting a feeder fund of investor Dan Loeb’s Third Point today vowed to keep fighting despite losing a shareholder vote on its proposals.

Asset Value Investors (AVI) has been lobbying Third Point Investors, a London listed feeder fund, to introduce reforms meant to narrow the gap between the fund’s share price and the value of underlying assets. Third Point has consistently opposed the calls, instead coming up with its own proposals.

AVI secured a vote on ousting Joshua Targoff, Loeb’s representative on the board, which is said was a proxy for its proposal. That resolution was defeated yesterday, with 75% of votes cast backing Targoff. Third Point said fewer than 20% of eligible votes went against their man.

Prior to the vote, AVI had vowed to give up if it was defeated. Third Points said it hoped the activist investor would “now cease in its attempts to impose its self-serving agenda”.

However, AVI today vowed to fight on, claiming that Third Point’s portrayal of the vote was “misleading”.

40% of Third Point shares are held by a structure known as VoteCo, a set up meant to avoid regulation of the UK fund by the US SEC. Three independent directors oversee the VoteCo stake.

VoteCo voted against AVI’s resolution. Tom Treanor, a director at AVI, said VoteCo was a “puppet” and claimed an “overwhelming majority” of independent shareholders backed its ideas. A spokesperson for Third Point denied the puppet claim. Shareholder advisory groups like Glass Lewis and ISS had opposed AVI’s motion.

Treanor and other AVI directors wrote in a letter today: “It is in no-one’s interest that this dispute plays out any longer in public, and we very much hope that the Board will now be willing to enter into discussions with us privately to find a solution.”

Third Point’s board said it wants to “focus its full efforts on promoting the attractive value-proposition of the Company to current and potential shareholders.” The vehicle said AVI’s activism was putting off prospective investors and damaging the company.

Third Point is itself known for its shareholder activism. Loeb, worth an estimated $4 billion, has waged campaigns against companies like Sony and Sotheby’s. A lifelong surfer, Loeb named Third Point after a legendary surfing spot in Malibu, California.