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 »

Hedge Fund Performance Has Insurers Reducing Exposure Says AM Best

Insurance Life-Carriers-AIS-sc 656 x 774

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 »

College Endowments’ Largest Allocators To Hedge Funds

  NOTE: * As of 30 June 2014  ** As of 31 December 2014  *** As of 31 August 2014 **** As of 31 March 2015, endowment only ***** E&F value as of 30 June 2014; allocations as of 30 June 2015 ****** As of 31 May 2014 (1) Assets in absolute return; does not include […] 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 »

A.M. Best on Insurance Industry Hedge Fund Exposures

Insurance Risk Lead Article Illustration

By Jason Hopper and Ken Johnson of A.M.Best*   Introduction In A. M. Best’s recently published briefing, “Industry Interest in Non-Traditional Assets Continues”, we discussed the overall increased interest in non-traditional assets which are found on Schedule BA of the U.S. statutory filings. As allocations to Schedule BA assets (BA assets) have been increasing for […] Read more »

Top Alternative Investment Trends for 2015

By David Frank, CEO & Managing Partner, Stonehaven, LLC   Over Stonehaven’s 14 year history we have witnessed and played a role in many shifting dynamics across the alternative investment industry. We are well-positioned in the marketplace to see trends with a 26 person platform representing over 20 asset managers to the global investment community. […] Read more »

Exploiting The Hunger Premium Of Emerging Managers

By Najy Nasser, Chief Investment Officer of HeadStart Advisers Ltd According to the English proverb: ‘hunger is the best sauce.’ In investment terms, those with the most to gain from strong performance, will work hardest to achieve it. Hunger can, therefore, be one of the best sources of return. When it comes to harvesting the […] Read more »

Chart Of The Day – Hedge Funds & The Largest 200 US Pension Funds

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Growth of DB Pension Fund Assets in Hedge Funds Source: Pensions & Investments,  Among the top 200 funds; assets are in billions for years ended Sept. 30. Investment in hedge funds among the 200 largest U.S. retirement funds jumped 20.3% to $134.7 billion in total hedge fund and hedge funds-of-funds in the year ended Sept. […] Read more »

And How Have The Internal Processes Developed At The Endowment To Invest In Hedge Funds?

By Simon Kerr One of the best things about the flows into the hedge fund industry coming from American investing institutions is that a good proportion of them are from public bodies. Consequently there is very good transparency about the activities in the hedge fund sector of state pension plans, for example. Through the annual […] Read more »