Hedge Funds Targeting Fire Insurance Hit a Wall in California

Hedge funds speculating on wildfire insurance claims in California were just dealt a legal blow, after the state adopted new legislation designed to stifle such bets.

Under the law, approved last month by California Governor Gavin Newsom, alternative investment managers buying so-called subrogation claims from insurers would see those transactions voided unless the utilities targeted were given the option to settle on the same terms.