Churning of Asian Hedge Funds Takes Its Toll

By Hedge Fund Insight staff   Only hedge funds based in North America had positive flows in both the first and second quarters of this year, according to data from Preqin. Net net hedge funds in Europe had positive flows in the first half of the year and hedge funds based in Asia-Pacific had net […] Read more »

Demand for European Hedge Funds Increases

By Hedge Fund Insight staff   Hedge Fund Insight has commented this year on Emerging Market (EM) hedge fund returns and capital flows in the context of the six month rule (see Emerging Market Hedge Fund Demand – The Six Month Rule in Action). The monthly report from eVestment on hedge fund industry capital flows remarked […] Read more »

Insurers Continued to Pull Away from Hedge Funds in 2016

From Jason Hopper and Dan Heitlinger of A.M.Best   Our November 2016 report, “Hedge Fund Performance Has Insurers Reducing Exposure,” noted rising investor concerns surrounding the performance of hedge funds and the insurance industry’s exposure to this asset class from 2013-2015. Based on 2016 data from year-end NAIC statutory financial statements, the insurance industry has continued pulling back its investment […] Read more »

Emerging Market Hedge Fund Demand – The Six Month Rule in Action

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By Simon Kerr, Publisher of Hedge Fund Insight   The “2017 Credit Suisse Global Survey of Hedge Fund Investor Appetite and Activity” contains the latest example of the six-month rule in action. Regular readers will know the rule and it’s workings (given below). If you haven’t heard of the rule and you have to do some marketing […] Read more »

Hedge Fund Performance Has Insurers Reducing Exposure Says AM Best

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By Jason Hopper and Ken Johnson of A.M. Best With interest rates remaining persistently low, NAIC Schedule BA assets, which include alternative investment securities, have generally provided insurers with the potential for higher risk-adjusted returns to help mitigate the decline in higher portfolio book yields. Without a meaningful increase in interest rates, insurers have limited choices for investing new dollars from […] Read more »

A.M. Best Comments on Insurers’ Hedge Fund Activity: Road Ahead Looks Rocky

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By Ken Johnson, CFA, CAIA, FRM, Vice President, A.M. Best.   Headlines reflecting the recent underperformance from the hedge fund industry have caused insurers to rethink their current investment allocations, and whether or not to add allocations to this non-traditional asset class going forward.  However, the ongoing low interest rate environment and more recent equity volatility have […] Read more »

Top 10 Trends in Insurance for 2016

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From Aite Group   Though the U.S. insurance industry is entering 2016 well capitalized and profitable, too much capital capacity does not bode well for pricing as new capital flows in, seeking opportunities and driving pricing competition. Against this backdrop, insurers will be juggling priorities: modernizing their core systems, maintaining profitability within existing portfolios, accelerating […] Read more »

…and Asian Hedge Funds Were Doing So Well

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By Simon Kerr, Publisher of Hedge Fund Insight   Though it may seem a thought from a long time ago, this year had been stacking up as a relatively good one for Asian hedge funds. This was true as recently as just over a month ago. Comparisons for performance in the YTD to the end […] Read more »

CTA Capital Flows Positive For Six Months Straight

From Eurekahedge   Hedge fund assets under management have increased by US$93 billion in the first six months of 2015, with roughly US$52 billion coming from performance driven gains and US$41 billion from new investor allocations.   Despite losses of 1.13% in June, European mandates continue to see resurgence in investor allocations. European hedge funds […] Read more »