Managing Risk
to Allow You to
Maximize Rewards

Hedge Fund & Asset Management: We Understand Risk, Just As You Do

Hedge Funds and Asset Managers face ever increasing criticism and scrutiny from a wide variety of sources, including politicians, regulators, the press and the plaintiff’s bar. Allegations of misconduct and lawsuits against fund managers are on the rise and there is no end in sight. At the same time, the sophisticated investors who invest with fund managers demand superior performance, while expecting adherence to the traditional high standards of care, loyalty and good faith.

If anything, the risks associated with running hedge funds and asset management firms appear to be getting worse. With hedge funds and asset management firms venturing into different areas, such as lending and private equity, and with the specter of governmental regulation looming, now is a very risky time for hedge fund managers and general partners.

Type of Risks that Firms Face

A brief list of allegations that Hedge Fund and Asset Management firms face includes:

  • Inadequate or Misleading Disclosure in the Offering Memorandum
  • Short- and Long-Position Trading Conflicts
  • Failure to Follow Investment Guidelines
  • Improper Side-by-Side Trading
  • Failure to Disclose Conflicts of Interest
  • Improper Valuations of Investment of Non-Liquid Assets

In this environment, managers need the guidance of an experienced advisor. Owens Group works with Hedge Funds and Asset Management firms to design insurance programs that meet the specific and unique needs of the hedge fund and asset management industry, including:

  • Professional Liability – to protect the firm if a client or investor sues for mistakes made in providing investment advice or investment management services.
  • Directors & Officers Liability – to safeguard the organization, its directors and officers, managers or partners for losses that allegedly arose out of their actions and decisions related to managing the firm.
  • Directors & Officers Liability for Fund – protects fund directors, trustees and general partners from legal costs and liabilities arising out of decisions, actions and statements made in their capacity as directors and trustees.
  • Cyber/Privacy Liability – provides protection from the costs associated with cyber lawsuits alleging invasion of privacy, disclosure injury, content injury, and reputational injury, among others.
  • Employment Practices Liability – provides protection for the firm for employee lawsuits alleging wrongful discharge, discrimination, harassment, retaliation and other employment-related practices.
  • Fiduciary Liability – protection in the event of a lawsuit from a retiree or employee of the firm against the firm itself and/or its directors, officers, or employees for breach of fiduciary duty or errors and omissions in the administration of an employee benefit plan.
  • Fidelity Bond– protects the firm’s assets from the potentially devastating cost of employee fraud.
  • Kidnap Ransom & Extortion: protects companies and employees against the broad range of expenses associated with incidents of kidnapping and extortions, including the cost of crisis management where available.

Our portfolio of products also includes:

Please contact us for a complimentary consultation and assessment.

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