Hedge Funds Betting on AIG Before Sandy

//Hedge Funds Betting on AIG Before Sandy

Hedge Funds Betting on AIG Before Sandy

Billionaire investor George Soros and Och-Ziff Capital Management Group LLC (OZM), the hedge-fund firm with $31.8 billion under management, added stakes in American International Group Inc. (AIG) in the third quarter before hurricane Sandy devastated the Eastern U.S.

By Zachary Tracer to Businessweek

Billionaire investor George Soros and Och-Ziff Capital Management Group LLC (OZM), the hedge-fund firm with $31.8 billion under management, added stakes in American International Group Inc. (AIG) in the third quarter before hurricane Sandy devastated the Eastern U.S.

The family office of Soros, 82, disclosed an investment of 15.2 million shares in the New York-based insurer as of Sept. 30, according to a filing yesterday. Och-Ziff tripled its stake to 33.2 million shares, it said in a filing.

AIG has fallen 16 percent from a 20-month closing high of $37.21 on Oct. 18. The firm hasn’t announced losses from the storm that made landfall Oct. 29, killing at least 100 people in the U.S. Sandy caused insured losses of $20 billion to $25 billion, according to Risk Management Solutions Inc.

“With Hurricane Sandy remaining an overhang for the group, primary insurers are now trading at levels well off recent highs,” Josh Stirling, an analyst at Sanford C. Bernstein & Co., wrote in a research note. “This trading is amplified by the fundamental uncertainty around the reasonable range of industry losses.”

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2012-11-16T20:08:25+00:00

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