By Hedge Fund Insight staff
Sandell Asset Management Corp. recently sponsored the launch of Sandell Re, a Bermuda based reinsurance company that can invest in the firm’s global event driven investment strategy, which will be managed in a separately managed account with an investment objective substantially similar to Sandell Asset Management’s main hedge funds.
Sandell Asset Management joins the band of top-tier hedge fund managers that have taken the route of establishing a reinsurance company because of the dedicated capital it brings to the asset management firm. The list of hedge fund firms that have insurance affiliates is impressive:.
Sandell Re was recently incorporated and licensed as a Class 3A reinsurer by the Bermuda Monetary Authority (“BMA”). Sandell Re was sponsored by Sandell Asset Management Corp. (“SAMC”) of New York, NY. SAMC, through an investment management agreement, will manage the assets of Sandell Re using the firm’s global event driven trading strategy.
Sandell Re is the most recent of a select group of participating reinsurers now operating on the Multi-Strat Re Ltd. platform. MultiStrat Re is a Bermuda specialty reinsurer designed specifically to launch and grow sponsored reinsurance companies like Sandell Re.
“We have been evaluating reinsurance opportunities for several years and believe this offers a unique permanent capital vehicle for the firm,” said Tom Sandell, Founder & CEO, Sandell Asset Management Corp. “Our goals remain aligned with our investors and we are committed to offering the best possible products and services to our clients. Reinsurance will provide one more option moving forward.”
“We are excited to welcome Sandell Re to the MultiStrat platform and look forward to supporting the growth of the company through our focus on specialty underwriting,” said Bob Forness, Chairman and CEO, MultiStrat Re. “Sandell Re is the fifth reinsurer to join the platform and the first for 2015.”