Bloomberg – Hedge funds are being spared punishment for their 2011 performance as insurers that suffered last year with lower-than-expected returns decide they won’t be able to do much better in the bond market.
Policyholder-owned insurer FM Global plans to boost the allocation to hedge funds in its $10.5 billion portfolio this year, after the bets “didn’t really deliver too well” in 2011, said Paul LaFleche, the company’s senior vice president of investments. The funds provide diversification and historically had attractive returns, he said.
