An Industry Is Falling Out of Love With Hedge FundsBy and
Insurers free up capital by switching back to fixed income
Goldman, BlackRock highlight benefits of hedge fund holdings
Insurers have had about enough of hedge funds.
Stung by market-trailing returns, the industry in the U.S. is reversing course after more than doubling its hedge fund allocation over five years, to $17.7 billion as of Dec. 31, according to data from the National Association of Insurance Commissioners. Just this month, American International Group Inc. said it submitted redemption notices for $4.1 billion, and MetLife Inc. announced a plan to exit most of its $1.8 billion hedge fund holdings.