Wed, Jan 25, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund insurance becomes more prevalent as uncertainty reigns

Tuesday, January 15, 2013

Bailey McCann, Opalesque New York:

Hedge fund manager insurance is not something that may immediately spring to mind as a consideration either on the part of managers or investors during a due diligence process, however, it can be a way of mitigating key man risk. According to Paul Grassi, head of the Hedge Fund Insurance group, at Wells Fargo hedge fund insurance has evolved since its earliest iterations in response to the financial crisis and investor demand. Grassi recently spoke to Matthias Knab about hedge fund insurance for Opalesque TV.

"The policy provides defense and indemnity protection in case there is a settlement of some sort. In addition, there are other exposures that they may have - crime from employees, kidnap and ransom exposures, all kinds of things that in fact impact them as they are traveling throughout the world meeting investors and providing advisory services," Grassi explains.

Hedge fund insurance is relatively new, Grassi set up his group with Wells Fargo in 2004. However, as managers travel and do business in a generally high-risk world, the protections afforded by carrying a policy are timely. So far, many of the major insurers, such as Travelers or Chartis have some version of the product available.

"You want to make sure that the limits are adequate, which is more or less a function of what the assets under management are," Grassi says. He furt......................

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. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised