Hedge Fund Fermat Pushes Back Against ‘Unprecedented’ UCITS Plan
Homes surrounded by flood waters after Hurricane Beryl made landfall in Sargent, Texas.
Photographer: Eddie Seal/Bloomberg
Fermat Capital Management says a European proposal to limit retail investors’ access to catastrophe bonds faces serious pushback, as money managers specialized in insurance-linked strategies mount a coordinated front.
John Seo, co-founder and managing director of the Connecticut-based hedge fund manager, says he’s been working with others in the industry to try to shield the market for cat bonds from the disruption he worries would follow such a regulatory intervention. He also says investors would ultimately find ways to work around stricter rules.