Why have 14 blue chip hedge fund managers acquired or started reinsurers?Jul 09 2013 1 Comment
Warren Buffett ran a hedge fund for 12 years before quitting fund management and turning to banking, insurance, and reinsurance in 1969 as a better way to generate returns. Taking their cue from Buffett, Moore, Maverick, Greenlight, Cerberus, Citadel, HBK, D.E. Shaw, Apollo, AQR, Third Point, SAC, Paulson, and Soros have all acquired or started reinsurance companies (Soros has formed at least four).
The primary reason is that the reinsurers are virtually certain to outperform the managers’ funds. Secondarily, the managers obtain asse ...more