Hedge Funds Struggling in the Insurance Game Present Value Play

When Third Point’s Daniel Loeb and Greenlight Capital’s David Einhorn took the plunge into what a recent Barron’s article describes as the “warm waters of the reinsurance business”, the article explains, they “sought to emulate Berkshire Hathaway, where Warren Buffett has successfully combined insurance with sizable equity investments and earned outsize returns on both.” The idea was to attract investors with a tax-advantaged alternative to investing in the hedge funds themselves, while providing greater liquidity… Read More