Insurance firm SiriusPoint (NYSE:SPNT) may not be a household word, but it’s already taken a big boost from one new development, and more may be to come. SiriusPoint is up over 11% in Wednesday afternoon’s trading because, pretty soon, there may not be SiriusPoint shares to buy anymore, thanks to a new move from Dan Loeb.
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Loeb noted that he’s planning to acquire SiriusPoint and ultimately take it private. He also expects that the company’s board members will get together to oversee plans to take SiriusPoint private. Currently, Loeb owns just shy of 15.2 million shares of SiriusPoint, which represents about 9.3% of the company. Given that Loeb himself is already on the board, such a move may not be hard for him to accomplish, noting that it would be “generally consistent” with other moves taken at insurance companies.
Loeb, in a recently-submitted 13 D/A filing, noted that SiriusPoint has a turnaround plan in place that will likely be best served by going private. Such a move would “…strengthen its financial position, enhance its credit ratings, and adhere to the highest regulatory standards.” Indeed, insurance firms are drawing a lot of interest lately from fund managers thanks to their ability to stand up during economic downturns, which we’re increasingly likely to pivot into these days.
Indeed, hedge funds are already putting a lot of extra interest in SiriusPoint, and have been for some time. In fact, they bought an extra 930,600 shares in the last quarter, which is the seventh consecutive quarter their holdings in the stock increased. As a result, hedge fund confidence is currently positive.
