Fitch Report On Hedge Fund Reinsurance (HedgeCo)
Fitch reports today that newly formed hedge fund reinsurers are unlikely to achieve an Insurer Financial Strength rating in the ‘A’ category under Fitch Ratings’ methodology. This is due to both general constraints applied to start-up companies, as well as potential unique asset and pricing risks tied to the hedge fund reinsurer business model. Longer term, a hedge fund reinsurer with a successful track record of balancing risks and demonstrating an established business could be rated in the ‘A’ category.
Deals not always the best for funds of funds (PIOnline)
The acquisition spree of the past decade has produced mixed results for acquirers of hedge funds and funds of funds and the firms they bought. Using growth of assets under management to gauge success, full or majority stake hedge fund purchases generally fared better than their hedge funds-of-funds deal counterparts, Pensions & Investments’ analysis showed. J.P. Morgan Asset Management (JPM)’s 2004 acquisition of hedge fund manager Highbridge Capital Management LLC, for example, has been a big winner, sources said. Highbridge managed $7.3 billion at the time of the acquisition, but that amount has risen to $15.4 billion as of June 30, confirmed Kristen Chambers, a JPMAM spokes-woman, in an e-mail.
Hedge-fund execs invest in indie films for producer credits (NYPost)
Hedge-fund and financial industry execs are investing in independent films to snag producer credits and to go on set and meet the stars. Media Society, an LA-based company launched in 2012, gives wealthy individuals the chance to be part of something glamorous, and make up to a 20 percent annualized return on their investment. It just finished producing with Donna Gigliotti (Oscar-winning producer for “Shakespeare in Love”) “Big Stone Gap” with Ashley Judd, Whoopi Goldberg, Jenna Elfman and Patrick Wilson.
Raise Your Hand if You’d Like to Work for Bridgewater (InstitutionalInvestorsAlpha)
One night back in June 2012, as Raymond Dalio accepted his Money Management Lifetime Achievement Award from Institutional Investor, he talked about how much he enjoyed going into his office. “I work with people I love,” said the CEO and founder of Bridgewater Associates in Westport, Connecticut. That might seem like a strong emotion for a work environment, but then Dalio’s management strategy makes life at Bridgewater somewhat like a tough love-oriented family – or as many observers have termed it, a cult. Who but your family, or your Bridgewater colleagues, would openly criticize the way you function on the job?
Hedge fund prize offers $1 million to cure…aging? (CNBC)
A hedge fund manager is the latest to embark on one of the most ancient of human quests: immortality. Joon Yun, president of $1 billion health care-focused Palo Alto Investors, announced a new prize last week that will award $1 million to researchers who can “hack the code of life and cure aging.” “The current health care system is doing a remarkable job addressing the diseases of aging,” Yun, also a trained doctor, said in a statement. “However, doing so without solving the underlying process of aging produces escalating effects on health care spending. We need a paradigmatic revolution. The aim of the prize is to catalyze that revolution.”