More on hedge funds, weather derivatives
We noted recently that hedge funds have hit upon weather derivatives as a potentially promising way to generate sorely needed alpha. The fact that some are questioning just how uncorrelated the weather asset class may be with equities doesn't appear to be a big issue. The latest news is that Man has bought a 25 percent stake in Nephila Capital; "an insurance specialist, working with instruments such as insurance-linked securities, catastrophe bonds, insurance swaps and weather derivatives," reports the Financial Times. The firm will be wrapped into Man's environmental finance specialist.
For more:
- here's the Financial Times article
Related Articles:
Weather trading a new growth area for hedge funds
Are you ready for weather derivatives?
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