Wednesday, 24 July 2013

Opalesque TV on Reinsurance

I confess on this post that I from time to time - maybe daily at the moment - receive e-mails from Fund Management publications like Opalesque. Matthias Knab is a major editor in this publication that occasionally also sends e-mails directly to my mail box with updates from this Swiss specific publication. I present here a video in which Matthias talks with Joe Taussig CEO of Multi-Strat Holdings about why the great Fund Managers of all time as well as some prominent Hedge Funds set a Reinsurance Business. He explains the superior returns of this business relatively compared with traditional Insurance, by the manner in which so called 'Float' premium received by re-insurers is properly used to invest elsewhere and only later the business needs to pay the cost of Insurance. But he warns also that the performance isn't equal for every Fund, which tells us that experience and the right strategy continues to matter. Nevertheless it is a reminder of why the Fund Management is so competitive and the way that, and in times of difficult to get low returns, the industry should strive to get the necessary alternatives.
Mr. Taussig takes also the opportunity to reveal the way Multi-Strat Holdings will in the near future - rest of this year and next years - set its strategy concerning deploying 1 Manager a month, and in 2014 onward 2-3 Managers a month in more of an Asset Management framework, and explains the more competitive and receptive playing field for this kind of business in cities like New York or London compared to European Financial Centers.

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