Man Group Invests in Weather

Date: Monday, June 9, 2008
Author: Paula Schaap

U.K.-based hedge fund firm Man Group is taking a stake in an alternative investment manger whose portfolio includes weather derivatives in a bid to expand its range of alternative investment strategies.

Man Group acquired a 25% stake in Bermuda-based Nephila Capital for $50 million in cash, the hedge fund said in a statement.

Nephila specializes in underwriting natural catastrophe reinsurance and investing in insurance-linked securities and weather derivatives. The firm has about $2.4 billion in funds under management.

Nephila’s co-founders, Frank Majors and Greg Hagood, as well as a third managing principal, Barney Schauble, will continue to manage the business.