HAMILTON, Bermuda (HedgeWorld.com)–XL Capital Ltd. will team with PlusFunds Inc., New York, in the development of S&P Hedge Fund Index products designed for the insurance and reinsurance company markets.
XL, itself an insurance and reinsurance company, already is heavily involved in the hedge fund industry. XL will assist PlusFunds in tailoring structured products that will appeal to the insurance and reinsurance industries, said Christopher Sugrue, chairman of PlusFunds. The products will be linked to Standard & Poor’s S&P Hedge Fund Index, which was announced in May and is slated to be unveiled in November.
Previously, XL has taken equity stakes in a number of hedge fund firms, including OneCapital Management Partners LLC, Stanfield Capital Partners, Agora Capital Management Ltd., Hamilton, Bermuda.
The industry is divided on the future of hedge fund indexing, with a slew of firms–such as Standard & Poor’s, CSFB/Tremont*, and MSCI–developing indexes to be used for indexes, while others in the industry criticize the effort.