Wednesday, 24 September 2014
Last updated 13 hours ago
Jan 10 2013 | 1:23am ET
Asian hedge funds may be catching up with their Western peers in a lot of ways, but insurance isn't one of them.
Just 64% of Asia-focused hedge funds have policies covering directors' and officers' liability and professional indemnity, a survey by Citigroup's prime brokerage shows. By contrast, more than 80% of European hedge funds had such insurance, according to a survey last year.
Things are getting better: Asian hedge funds founded in the past three years have, on average, gotten insurance within five months of inception. Older funds took 1.6 years to do so, according to the survey; those founded before 2002 took seven years, on average.
"The adoption of management liability insurance by hedge fund managers in Asia-Pacific is being driven by an increasing understanding of personal financial liability associated with potential litigation," David Stanbridge, who works in Citi's prime finance advisory unit in Asia, told Bloomberg News. "Regulatory decisions provide additional impetus for managers to consider protection."
Fund size is a major indicator of the likelihood of owning coverage: Of the 47 Asia-focused managers polled, all of those with more than US$500 million in assets had insurance, but most Asian hedge funds have US$50 million or less. In the survey, hedge funds cited cost and potential impact on performance as the main reasons for not getting covered. Lack of investor demand was also noted.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitich, CIO of Petty Endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.