Hedge Funds

Ex-ZCM chief execs prepare to launch first fund


XE Capital, the diversified alternative investment firm set up earlier this year by the founding chief executives of Zurich Capital Markets, is getting ready to take outside capital for its first hedge fund.

Not surprisingly, given the reputation ZCM established for developing innovative and profitable financing techniques, New York-based XE's first hedge fund will target unusual structured securities that construct themselves.

The fund is initially targeting such arcane, yet booming markets as so-called life settlements. The settlements result when life insurance buyers sell their policies in advance of the insured's death, for reasons as various as the departure of