904 Funds Close in 2013

A Financial Times Alphaville article observes that “Zombie hordes thrive, await further hedge fund corpses” with one tenth of hedge funds closing last year, half of funds closed in the last ¬†five years. ¬†This is the latest article in their series on the birth, death and sometimes zombie status of funds.

The most dangerous time for lawsuits from investors and regulatory investigations is when funds are opening or closing. Directors and Officers insurance can protect the individuals of the firm from personal liability. Even those firms organizing offshore have found that their personnel are not protected onshore from US suits and investigations.

Contact CoverFunds.com today to discuss better protecting your firm today, tomorrow and years into the future.

Financial Times on the Fight for Funding

A financial times article points out the headwinds new funds are facing when raising capital. With investors gaining an increasing upper hand expectations are higher and terms are more unfavorable for managers. With higher expectations come bigger liabilities.

Start up funds need to carefully manage their operating funds, choosing the correct insurance program is important. Working with an expert like CoverFunds.com allows operators to choose to take additional risk or scale back coverage terms to decrease fixed costs.

Hedge funds should be careful not to pay for coverage they don’t need, buy direct from the experts and find the most affordable coverage for your firm. Not all coverage is created equal, officers of a fund need to take a calculated risk and weigh the costs and benefits of any potential insurance program.