Swiss Re Insurance-Linked Fund Management

PCS - Emerging Risks, New Opportunities

Hedge funds took the brunt of Katrina, Rita & Wilma

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Euromoney Magazine is reporting that hedge funds suffered almost half the losses (approx. $12 billion) from the three major hurricanes Katrina, Rita & Wilma last year due to their participation in the catastrophe bond market.

Will losses of this magnitude make hedge funds more wary of participating in the market or do the benefits still outweigh the risks for them? Please post your thoughts in the comment field.

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