ESG & Investing
Hedge Fund Fermat Says Returns Hit After Cat-Bond Selloff
- Result reflects market anxiety in May amid hurricane warning
- ‘No room for complacency’ as peak hurricane season nears
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Fermat Capital Management, one of the world’s biggest investors in catastrophe bonds, says anxiety about this year’s hurricane season has already left a meaningful dent on returns.
“Returns in May were low and even negative for a lot of funds,” Brett Houghton, managing director at Fermat, said in an interview. “Widespread fears about a particularly severe hurricane season meant there was a lot of selling pressure in the secondary market.”