Thu, Feb 23, 2017
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. People - Kuwait wealth fund head Al Saad said to step down after 14 years[more]

    From Bloomberg.com: Kuwait Investment Authority is set to name Farouk Bastaki as managing director, replacing Bader Al Saad who ran the world's fifth-largest sovereign wealth fund for 14 years, a person familiar with the matter said. The KIA, as the fund is known, is finalizing the appointment, said

  2. Manager Profile - Eddie Lampert: a painful entanglement with Sears[more]

    From Moneyweek.com: "In the long run we are all dead." Lex in the Financial Times reached for the famous quote from John Maynard Keynes in January when, after a long and unforgiving decline, the clock finally appeared to be running out on Sears, the iconic US department store group. Yet the group's

  3. Investing - Hedge funds quit Aberdeen shorts as shares begin to recover, Hedge funds' next big short: U.S. malls, O'Connor fund owns 9.5% of Protalix Biotherapeutics, U.S. hedge fund takes position in Macau hotel The 13[more]

    Hedge funds quit Aberdeen shorts as shares begin to recover From Investmentweek.co.uk: The last two hedge funds to short Aberdeen Asset Management have removed their positions, as the fund group's shares begin to show signs of recovery after a difficult few years. According to the Financ

  4. Latin America, high yields and Asia Pacific strategies dominate hedge fund returns in January[more]

    Komfie Manalo, Opalesque Asia: Latin America (+7.04%), high yield (5.63%), and Asia-Pacific (+5.06%) strategies dominated hedge fund performance in January, data provider Hennesee Fund Research said. The bottom three strategies for the mont

  5. Investing - Hedge funds loading up on this dividend stock, The biggest hedge funds have been piling into bank stocks[more]

    Hedge funds loading up on this dividend stock From Incomeinvestors.com: Hedge funds are backing up the truck on Cameco Corp stock. Billionaire Jim Simons owns 389,000 shares. Other Wall Street titans - including Ray Dalio, Ken Griffin, and Chuck Royce - have been quietly building positio