hedge fund

The month of October saw positive returns from the majority of insurance-linked securities funds (ILS) but the average return of the ILS fund market, as measured by the Eurekahedge ILS Advisers Index, was below the historical average.

According to global assurance, tax, advisory and transactions firm EY (Ernst & Young) more asset managers are likely to launch their own reinsurance firms as they seek to emulate the successful hedge fund reinsurer strategy to leverage reinsurance premiums as a source of capital.

Institutional hedge fund and equity investment managers have taken stakes in Bermuda-based reinsurer Third Point Reinsurance Ltd. The hedge-fund type reinsurer clearly resonates with large hedge funds such as Citadel and equity focused managers like Cambiar, both of which hold large stakes.

The third-quarter results reported by Bermuda-based reinsurer Third Point Reinsurance Ltd., backed by hedge fund manager Dan Loeb’s Third Point LLC, show improvements in underwriting and investment returns as well as growing income from its catastrophe fund business.

Bermuda headquartered reinsurance firm Third Point Reinsurance Ltd., backed by hedge fund manager Dan Loeb’s Third Point LLC, has appointed three experienced and senior executives as new members of its board of directors.

Bart Hedges, CEO of Greenlight Capital Re, the Cayman Islands reinsurance firm backed by hedge fund manager David Einhorn, said that there is room for catastrophe reinsurance pricing to drop further, as the floor on natural catastrophe pricing has not yet been reached.

September saw insurance-linked securities (ILS) funds return their strongest single month performance of the year so far, thanks to the very quiet Atlantic hurricane season and continued seasonal spread tightening, according to the Eurekahedge ILS Advisers Index.

The launch of Nephila Syndicate 2357, the first Lloyd’s of London syndicate backed by an insurance-linked securities (ILS) manager, underlines the Lloyd’s re/insurance markets commitment to engage with new sources of capital, according to a report from Aon Benfield.

Greenlight Re, the Cayman Islands domiciled reinsurer, backed by fund manager David Einhorn and his Greenlight Capital, Inc. hedge fund which acts as an investment manager for Greenlight Re, faces increasing competition from new reinsurance companies with similar investment strategies.

Two Sigma Investments, a technology and data driven hedge fund and investments firm, is reported to be the front running candidate to buy hedge fund manager Steven A. Cohen’s firm SAC Capital’s stake in its year old reinsurer SAC Re.