Sat, Oct 1, 2016
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. Opalesque Exclusive: BlackRock taps Artivest for alternative investment platform partnership[more]

    Bailey McCann, Opalesque New York: BlackRock will be working with New York-based Artivest to provide a platform for broader distribution of BlackRock alternatives funds. Artivest is a technology-driven alternative investment platform that also offers brokerage services. BlackRock has approximatel

  2. Eden Rock buys Gottex stake in ERG Asset Management[more]

    Matthias Knab, Opalesque: Eden Rock Group announced the purchase of Gottex’s stake in ERG Asset Management and so the firm is now wholly owned by Eden Rock. The two firms established the joint venture in 2011 to focus on providing cost effective solutions to funds holding illiquid investments, as

  3. "Hedge fund industry needs to shrink"[more]

    Komfie Manalo, Opalesque Asia: Writing for CNBC, Josh Brown, creator of The Reformed Broker blog and financial advisor for Ritholtz We

  4. Strategy - Voyager Management wants to invest in smaller hedge funds[more]

    From Valuewalk.com: Voyager Management, a $475 million fund of funds, is looking to downsize the hedge fund’s in which they invest, looking for smaller funds with assets under management that enable the fund to be nimble. The fund is looking for noncorrelation and will consider long / short equity

  5. Asia - Quant hedge funds are China's hot new export, Europe banks return to Korean brokerage market; target debt, alternative products[more]

    Quant hedge funds are China's hot new export From Bloomberg.com: Add China’s quant shops to the list of hedge funds branching out across Asian markets. Quantitative money managers from the world’s second-largest economy are opening offshore funds at a never-before-seen pace, according to