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From Kirsten Bischoff, Opalesque New York:
The life settlement investing space is slowly gaining traction in the financial industry both by the growth of assets in the space and the performance of those specializing it. In fact the trade organization Life Insurance Settlement Association (LISA) confirms that up until now "capital from Wall Street, such as hedge funds and pension funds, still view this asset as too exotic, complex, and not transparent enough."
However, that may change in 2009 after use of these instruments and understanding of them grows. In 2009 AIG used a securitization of an $8.4 billion pool of life settlement policies to repay its $1.2 billion loan to the Feds. British Virgin Islands-based Tranen Capital's +2.49% return for March 2009 (+11.5% YTD) hopes that recognition from its top spot on the Barclay Hedge Rankings provide another indicator that these markets are not only viable, but have returns completely uncorrelated to the larger markets.
Tranen, which also has offices in Boston, launched in July 2008. The Tranen Capital Alternative Investment Fund is now two months shy of its first anniversary and has managed to return 27%.
According to the firm website: "Utilizing the various benefits of Life Insurance products, Tranen Capital operates a diversified strategy by managing variables of value, contestability and projected maturities, carrying the strategy forward by select...................... To view our full article Click here
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