Thursday, 2 October 2014
Last updated 15 min ago
Oct 15 2008 | 11:53am ET
The lackluster performance of hedge funds has also had a negative affect on institutional investors, specifically insurance companies. Publicly traded insurance concern Max Capital Group said its overall investment portfolio for the third quarter fell 2.85%, leaving it down 2.19% for the year.
Specifically, Max Capital’s loss on its alternative investments is expected to be 12.93% for the quarter and 11.97% for the year. The company’s alternative investments represented approximately 20% of its total invested assets of approximately $5.2 billion as of the end of June.
As a result, Max Capital said it has decided to reduce its allocation to alternative investments to 10% to 20% of invested assets from the 15% to 25% current range. In addition, the company plans on increasing the number of strategies employed and managers within the alternative investment portfolio, employing a less volatile, more market neutral benchmark to monitor risk and measure relative returns, and reduce exposure to the asset class over the next two quarters to the mid-point (15%) of the its new allocation.
“Worsening market conditions—third quarter hedge fund returns were the worst since benchmarking became available—necessitated an acceleration of that review, and we initiated a series of fund redemptions in the third quarter of 2008 to rebalance our portfolio in accordance with our updated investment strategy,” said Marston Becker, CEO of Max Capital.
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…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...