Monday, 20 October 2014
Last updated 8 min ago
Jul 31 2013 | 9:33am ET
Insurance ratings agency A.M. Best has put SAC Capital Advisors' reinsurance arm on watch in the wake of criminal insider-trading charges against the hedge fund.
A.M. Best said that SAC Re was on review with negative implications, saying it wished to review an updated business plan—one that would say who would manage the reinsurer's assets should SAC itself be put out of business. SAC Re invests its assets and premiums with SAC Capital.
"Presently, there is uncertainty as to whether the invested assets can be managed by SAC Capital as well as whether there will be ramifications concerning any affiliation with SAC Capital on the reinsurance franchise going forward," A.M. Best said. "Rating downgrades could occur if SAC Re cannot separate itself from reputational risk, the business plan is not executed over the long term or key management is not retained."
SAC Re, which SAC launched a year ago, currently has an A-minus rating. The company is not technically a subsidiary or division of SAC, but is at risk because it shares a name with the troubled hedge fund, A.M. Best said.
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 McKitish of Peddie School's 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…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...