- Advertisement -

Related

MetLife redeem 1.2 billion USD in hedge funds

Powering Hedge Funds

Stockholm (HedgeNordic) – MetLife, the largest U.S. life insurer, said it is seeking to exit most of its hedge fund portfolio after a slump in underlying investments, according to Bloomberg.

The insurer is looking to redeem 1.2 billion USD of its 1.8 billion USD it holds in hedge fund allocations, a process that may take a couple of years to complete, Chief Investment Officer Michael Goulart said in a conference call on Thursday discussing first-quarter results.

According to Goulart, the portfolio, which suffered losses during the quarter, was cut by 600 million USD already in 2015.

“It’s had up-and-down years and really it’s just too inconsistent, we think, in actual performance. What we’ll be left with is a small portfolio of really our most consistently performing managers in hedge funds”, Goulart said.

MetLife’s competitor, American International Group (AIG), is also shifting allocations after posting three straight unprofitable quarters. The company said Tuesday that it has submitted notices of redemption for 4.1 billion USD of hedge fund holdings through March 31. Average invested assets in hedge funds at AIG were 10.1 billion USD for the first quarter, Bloomberg reports.

Picture (C): Jezper – shutterstock.com

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

HedgeNordic Editorial Team
HedgeNordic Editorial Team
This article was written, or published, by the HedgeNordic editorial team.

Latest Articles

AP3 Hires Lynx’s Mattias Sundbom as Head of Portfolio Strategy

After spending the past decade at some of Sweden’s largest systematic asset managers, most recently at Lynx Asset Management, Mattias Sundbom has now moved...

Colosseum’s Rollercoaster Start Gives Way to Strong Rebound

Early investors in the freshly launched Colosseum Global Alpha have experienced a rollercoaster ride in recent months, though the latest stretch has been largely...

Nordic CTAs Thrive in February’s Volatile Macro Landscape

February proved to be another favorable month for Nordic CTA managers, leaving CTAs as the best-performing sub-strategy in the Nordic Hedge Index so far...

Core, Satellite, and Structural Premiums: PensionDanmark’s Approach to Emerging Market Debt

Many institutional investors have gradually internalized mandates once awarded to external managers, seeking tighter cost control, greater transparency, and improved alignment. Emerging market debt...

PIMCO: Similar Yields, Better Risk Profile in European High Yield

The U.S. high yield market has long been regarded as the global benchmark: deeper, more liquid, and broader in sector composition. For many allocators,...

Avoiding the Echo Chamber: Kraft’s Playbook in Tighter High-Yield Market

Delivering strong returns during a market rebound is one thing. Preserving performance momentum once spreads tighten and dispersion fades is another. That was the...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -