Friday, 25 July 2014
Last updated 33 min ago
May 12 2008 | 10:09am ET
American International Group said its hedge fund investments were “a real laggard” in the first quarter. It wasn’t kidding.
The world’s largest insurer by assets said its alternative investments portfolio produced just $197 million in assets, a staggering 84% decline from the year-earlier period, when it earned $1.22 billion. AIG blamed the credit crisis for the weakened hedge fund and private equity performance.
Alternatives were not the only credit-crisis linked losses for AIG last quarter: The firm swung to a $7.81 billion loss on subprime- and housing market-linked losses. The insurer turned a $4.13 billion profit in the first quarter of last year.
About 3.5% of AIG’s investment portfolio, or $29.4 billion, is invested in alternatives.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…