Sandell Asset control Corp., the activist hedge-fund company run through Tom Sandell, commenced a Bermuda-based reinsurer to guide its making an investment method.
Sandell Re will rely on the hedge fund to oversee the reinsurer’s property, the the big apple-based totally firm stated Thursday in a announcement.
“We have been evaluating reinsurance opportunities for several years and accept as true with this offers a completely unique permanent capital vehicle for the firm,” Tom Sandell, fifty four, said inside the declaration.
Sandell joins hedge-fund managers David Einhorn and Daniel Loeb in organising offshore reinsurers, which offer them get admission to to greater lengthy-term cash to make investments. Reinsurers expect dangers from primary insurers and make investments premium revenue earlier than claims come due.
Sandell based the fund in 1998 and utilizes an event-driven investing method just like Loeb’s third point. It has about $1 billion in assets below control, in line with someone familiar with the matter, who asked now not to be identified due to the fact the records isn’t public.
The fund has bought shares in groups inclusive of restaurant chain Bob Evans Farms Inc. and pipeline operator SemGroup Corp. and driven for board modifications and spinoffs.