Secondary perils — mostly in the form of destructive thunderstorms — aren't being consistently captured by models designed to measure cat bond risk, according to fund managers monitoring the development. Credit: cherylvb/Adobe Stock Secondary perils — mostly in the form of destructive thunderstorms — aren't being consistently captured by models designed to measure cat bond risk, according to fund managers monitoring the development. Credit: cherylvb/Adobe Stock

(Bloomberg) — As the best hedge fund strategy of 2023 becomes a magnet for mainstream investors, the risk models it relies on are getting a lot tougher to crack.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.