Hedge funds rake in huge profits betting on catastrophe risk

Hedge funds rake in huge profits betting on catastrophe risk
Hurricane Ian left a trail of destruction after it slammed into areas like Matlacha Isles, Florida, in 2022. (Image: Bloomberg)
Bloomberg
By Sheryl Tian Tong Lee and Gautam Naikwith assistance from Nishant Kumar, Janet Paskin and Stephan KahlFor hedge funds, the science of catastrophes helped generate the best returns of any alternative investment strategy last year.The calculus around natural disasters such as hurricanes and cyclones fed record gains at funds managed by firms including Tenax Capital, Tangency Capital and Fermat Capital Management. All three delivered results that were more than double an industry benchmark, according to public filings, external estimates an...

More Investments

Why Ebos is hunting SMEs
Markets

Why Ebos is hunting SMEs

What's next for Ebos after the end of that Chemist Warehouse contract.

Fletcher 'in far better shape than expected': Reding
Infrastructure

Fletcher 'in far better shape than expected': Reding

Fletcher Building’s underlying businesses had been operating well, new boss says.

Barbara Chapman to leave Fletcher board
Markets

Barbara Chapman to leave Fletcher board

Shareholders in the embattled construction firm gather today for its AGM.

Fletcher faces backlash on equity raise costs
Markets

Fletcher faces backlash on equity raise costs

NZSA fears lack of competitive tender process increased investment bank fees.