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Wake-up call for hedge fund investors
Many major US insurance firms are doing a rethink, following steep losses in their hedge fund investments during the last quarter.
Add BT as a preferred sourcePublished Fri, May 13, 2016 · 09:50 PM
LIKE many sophisticated investors, the nation's largest insurers drank the hedge fund Kool-Aid, pouring billions into the high-fee investment funds and helping drive hedge fund assets to more than US$3 trillion.
Now comes the hangover.
Steep losses in hedge fund investments during the last quarter damaged many insurance company earnings, reinforcing decisions to rethink the premises that led them to follow the Pied Pipers of finance in the first place.
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