Mon, Jun 18, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Taussig Capital launches Multi-Strat Re reinsurance platform

Wednesday, October 03, 2012

amb
Joe Taussig
Bailey McCann, Opalesque New York:

Zurich–based Taussig Capital is launching a new platform that will give hedge fund managers the opportunity to get into reinsurance. Recent entrants into this area include Daniel Einhorn’s Greenlight Re, and Jonathan Bloomer’s Scottish Re. Before them, Warren Buffet, Louis Bacon, and George Soros have each gone into the reinsurance business. According to Joe Taussig, CEO, Taussig Capital, for hedge fund managers who get into reinsurance, they can expect that their reinsurance company will outperform their funds, significantly increase AuM from sources they could not otherwise access, and secure permanent capital.

Reinsurance differs from insurance in that, rather than taking on the processes and costs of individual transactions, the reinsurance company focuses on the balance sheet, handling the transfer of blocks of risk. "You can’t have a small reinsurer," Taussig explains in an interview with Opalesque. However, for hedge fund managers, who are already familiar with how to handle risk, doing that and getting permanent capital as a return can make for a significant opportunity.

The pioneer managers in this area faced significant start-up hurdles in terms of raising the capital, understanding the business, significant compensation commitments and startup costs with no assurance of success, and nurturing the deal from start to finish. According to Taussig, "we have spent many more days on many more projects t......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Lyxor recommends stockpicking strategies, L/S equity hedge funds well equipped for turbulent markets[more]

    Matthias Knab, Opalesque: Market developments in May saw some trend reversals across the fixed income and commodity space. On the one hand, the unfolding of the Italian political crisis coincided with a rebound of U.S. Treasuries during the second half of May. On the other hand, the rising likeli

  2. North America - George Soros: 'Everything that could go wrong has gone wrong'[more]

    From Marketwatch.com: George Soros, tell us how you really feel. 'Everything that could go wrong has gone wrong. [Trump] is willing to destroy the world.' The 87-year-old billionaire clearly isn't shy about expressing his generally liberal views and distaste for Trump's "America First" platform,

  3. Paper: The performance of stocks actively pitched by hedge funds[more]

    Using a novel dataset drawn from investment conferences from 2008 to 2013, I show that hedge funds take advantage of the publicity of these conferences to strategically release their book information to drive market demand. Specifically, hedge funds sell pitched stocks after the conferences to ta

  4. North America - US fundraising for special purpose acquisition vehicles hits record this year[more]

    From AFR.com: Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount fo

  5. Investing - Man Group and AQR try to take aim at private equity industry, Hedge funds poised to be winners in AT&T-Time Warner deal[more]

    Man Group and AQR try to take aim at private equity industry From FT.com: The popularity of private equity investments has prompted asset managers such as Man Group and AQR to devise strategies that aim to replicate PE returns but at a much lower cost to investors. Both companies a