Tuesday, 23 September 2014
Last updated 2 hours ago
Oct 17 2013 | 2:50pm ET
Quantitative hedge fund Two Sigma Investments is the likely buyer of SAC Capital Advisors' reinsurance business.
The New York-based firm is in exclusive negotiations with SAC over the hedge fund's stake in SAC Re, Insurance Insider reports. Under the deal, the Bermuda-based reinsurer would invest its premiums in Two Sigma funds, as it currently does with SAC, giving Two Sigma a source of permanent capital.
According to Insurance Insider, former Marsh & McLennan CEO Brian Duperreault is involved in the discussions, although it is unclear whether he is merely advising Two Sigma or whether he would be involved in the business after a deal.
SAC is moving to sell or close its year-old reinsurer after being hit with criminal insider-trading charges. The hedge fund informally approached several firms about buying SAC Re; it is unclear whether Two Sigma was among them. SAC, firm founder Steven Cohen and private-equity firm Capital Z Partners set up the reinsurer last summer with $500 million in initial capital.
SAC is currently in talks to settle the insider-trading charges; any deal with prosecutors would likely see the firm barred from managing outside capital, such as SAC Re's.
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.