AIG investment in hedge funds News

Insurers have had about enough of hedge funds. Stung by market-trailing returns, the insurance industry in the U.S. is reversing course after more than doubling its hedge fund allocation over five years, to $17.7 billion as of Dec. 31, according …

American International Group Inc. plans to exit at least half the hedge funds in which the insurer is invested, according to people familiar with the company’s portfolio. The insurer has holdings in more than 100 funds and plans to cut …