Tue, May 22, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Reinsurance companies offer a source of permanent capital for hedge fund managers

Wednesday, August 07, 2013

Bailey McCann, Opalesque New York:

In October, Opalesque first reported on the launch of Taussig Capital, which launched a reinsurance platform for hedge fund managers interested in opening that business line. Some big names in the hedge fund world run reinsurers – Buffet, Einhorn, Loeb, Paulson. Indeed, the reinsurance arm of Daniel Loeb’s Third Point, recently disclosed that it was seeking to raise up to $370.6m from its forthcoming initial public offering.

According to the Joe Taussig, founder and CEO of Taussig Capital, the benefits for the manager include permanent capital, which is what attracts them. For investors there are benefits too, "if it gets publically traded like Greenlight or Berkshire are, they get daily liquidity. Greenlight trades about $4 million worth of shares a day. Greenlight trades at the premium to book value, so you not only compound and higher our lease, because of the business than the fund would, but you get the premium to book value and daily liquidity," he explains in a recent Opalesque TV interview.

Fund managers can see their reinsurance business outperform their own f......................

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. News Briefs - Warren Buffett: Target date funds aren't the way to go, Cambridge Analytica could be reborn under a different name[more]

    Warren Buffett: Target date funds aren't the way to go Planning for retirement can be complicated and stressful. This is why target date funds - funds that are managed based on when you expect to retire - are so attractive. Over time, the balance of stocks, bonds and cash evolve automati

  2. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  3. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven