Wednesday, 27 August 2014
Last updated 3 hours ago
Mar 15 2012 | 11:12am ET
It's getting expensive to insure your hedge fund—and will get more so, according to a new report.
Professional liability policies are costing 5% to 10% more this year, SKCG Group said. Those policies had been getting cheaper and cheaper over the last few years, with a $200 million hedge fund paying less than $70,000 a year for $5 million of coverage six months ago, down from $125,000 three years ago.
"They are starting the conversation with requests for 10 percent increases, and are eyeing those higher 2009 price levels as a goal for the next few years," SKCG's Richard Canter said.
For now, they're settling for a slight increase over late 2011 prices. The same $5 million policy mentioned above now runs about $75,000.
Hedge fund liability policies cover legal fees in the event of legal or regulatory action. And it is the aggressiveness of the latter that is driving the current jump in rates, according to Canter.
"Insurance carriers know that hedge funds are in regulators’ cross hairs," Canter said.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...