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 »

Investors Buy CTAs Rather Than Macro in 2017

By Hedge Fund Insight staff The latest data from Eurekahedge shows the best flows into the hedge fund industry for a number of years for the first quarter of 2017. Preliminary net asset flows were positive in March with US$9.3 billion of inflows into the industry. Investor subscriptions have picked up pace since the start of the […] 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 Outlook – Greater Dispersion To Aid Equity Strategies, Credit? Not So Much

by 50 South Capital Advisors, LLC. INTRODUCTION After a volatile first quarter of 2016, global equity and bond markets regained their footing and finished in positive territory for the year. European equities were the regional exception, with the MSCI European Index posting negative returns through November. Although markets overall generated positive returns for investors in […] Read more »

Consultant Verus Negative on Outlook for Event Driven Hedge Funds

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By Hedge Fund Insight staff   In a recent report Verus, the investment consultant created out of the combination of Wurts and Strategic Investment Solutions, was constructive on the outlook for three out of five hedge fund strategies. The consultant gave forward-looking views across the broad hedge fund investment strategies as shown in the table below. […] 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 »

How Do Pension Plans Monitor Their Hedge Funds, For Example Florida SBA?

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By Simon Kerr, Publisher of Hedge Fund Insight   The Florida State Board of Administration runs the  $141bn Florida Retirement System Pension Plan through an Investment Advisory Council. As a public body it’s papers are available online, and an exploration of the material gives an insight into the way large pension plans, and State sponsored plans in […] Read more »

US Investors Still Expected To Determine Hedge Fund Industry Growth into 2H

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By Credit Suisse Capital Services Group and Hedge Fund Insight staff Credit Suisse today announced the results of its mid-year Hedge Fund Investor Sentiment Survey, which polled over 200 global institutional investors representing almost USD 700 billion in hedge fund investments. Participants were surveyed on their hedge fund activities during the first half of the […] Read more »

Graphic of The Day: Axis Capital’s Hedge Fund Allocations

By Hedge Fund Insight staff   In  2015 Bermudian insurer Axis Capital started to implement a shift in it’s “other investments” which had driven the variations in investment performance for the firm. The strategic shift was to reduce the exposures to hedge funds and put the capital released into direct lending, real estate and private […] Read more »

Lyxor To Stick With Overweight in Merger Arbitrage

From Lyxor Asset Management   March has been a positive month for risk assets. As soon as mid-February, the Fed started to prepare markets for a softer stance than expected by market participants. Mid-March, it delivered at the FOMC meeting with a downward revision of growth and inflation forecasts for 2016, consolidating the rally in […] Read more »