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Loeb Hedge Fund Lowers Fees for Slumping Third Point Reinsurer

  • Management fee will be 1.5%, down from 2%, in five-year pact
  • Reinsurer trades for less than 2013 initial public offering

Third Point Reinsurance Ltd. won lower fees on investments overseen by Dan Loeb’s Third Point LLC, the hedge fund manager that helped start the Bermuda-based reinsurer.

Third Point Re will pay a 1.5 percent annualized fee in addition to as much as 20 percent of the profits, according to a regulatory filing Tuesday. Previously, the management fee was 2 percent, according to a 2015 filing. The new contract is a five-year commitment. The deal also allows the reinsurer to take advantage of more favorable terms if they are offered to other investors in the hedge fund.