(Bloomberg) Mike Siegel, who oversees about $190 billion at Goldman Sachs Group Inc.’s asset-management arm, said insurers should stick with hedge funds even after their recent slump, because the industry needs investing strategies beyond low-yielding bonds.
“All asset classes have their day in the sun and their day in the shade, and this may be one of those times, a day in the shade,” Siegel said of hedge funds Wednesday in a televised interview with Jonathan Ferro and Amanda Lang. “I can’t say the model is dead, I just don’t believe that.”
American International Group Inc. and MetLife Inc., two of the largest U.S. insurers, disclosed this month that they’ve submitted notices to redeem billions of dollars from hedge funds after declining results squeezed profits. Warren Buffett said April 30 that investors are paying unbelievable fees for hedge fund strategies that have failed to keep pace with index funds that track the S&P 500.
