Sun, Jun 24, 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. 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

  2. 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

  3. 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

  4. News Briefs: David Stemerman's hedge fund holdings shrank before his run for governor, nvestment manager TSW triggers succession plan, Alan Howard joins Peter Thiel investing in Cologne-based fintech startup[more]

    David Stemerman's hedge fund holdings shrank before his run for governor But the U.S. holdings of Stemerman's Greenwich hedge fund, Conatus Capital, shrank from $2.6 billion at the apex to just over $1 billion before he announced his move into politics. (Hartford Courant) Inv

  5. British Empire: Pershing's 23% discount 'unsustainable'[more]

    From Citywire: The wide discount on Pershing Square Holdings (PSH) is 'unsustainable' and puts star hedge fund manager Bill Ackman under pressure, says British Empire (BTEM). Pershing is the third largest holding in the £850 million British Empire trust, managed by Joe Bauernfreund, which sp