Published On: Sun, Feb 22nd, 2015

Oh, For A Hedge Fund That Buys Insurance

Insurance is a safe haven for many hedge funds

(L-R) Daniel Loeb,   Bruce Berkowitz,   Leon-Cooperman,   Steve Cohen and John Paulson


With so many sectors getting battered, given low energy prices and weakness in Europe, boring old insurance seems to be a save haven for many hedge fund managers.

Insider Monkey tracked 700 insurance firms to see which were the most popular with hedge fund managers, and the results were: AIG, MGIC Investment Group and Prudential.

There are around 15 hedge fund managers who are long AIG, with a total investment value of $11.65 billion. Leon Cooperman of Omega Advisors owns 4.01 million shares and Dan Loeb of Third Point holds 3.50 million. Shares of AIG have risen 12% over the last year and has doubled in the last three years. Bruce Berkowitz, who manages Fairholme, said AIG is a good investment because it is cheap, and it is the largest position in his portfolio.

MGIC Investment Corp is a favorite of John Paulson, who owns 14.40 million shares, but the stock has fallen 14% in the last quarter. However, MGIC reported its first profitable year since 2006.

Prudential is a top holding in Ken Griffin’s Citadel Management, Steven Cohen‘s Point 72 Asset Management and Israel Englander’s Millennium Management. Cohen increased his stake in Prudential tenfold to 469, 100, according to Insider Monkey.

Hopefully these insurance holdings will insure these funds against volatility in the larger economy.

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