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

Wed, 24 Jan 2024

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...

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