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Morning Brew Daily

Hedge Funds Cash-In on Disasters & Exxon Mobil Bites Back

Jan 23, 2024
27:16
Snipd AI
Neal discusses record-breaking profits hedge funds made by betting on catastrophes while Toby explains the 'mob wife' trend. They also discuss why AI won't take away jobs yet and the latest buzzword in real estate, 'blue zone'.
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Podcast summary created with Snipd AI

Quick takeaways

  • Hedge funds have made record-breaking profits by investing in natural disasters, a high-risk, high-reward strategy that has paid off tremendously.
  • The rollout of the world's first malaria vaccine in Cameroon has the potential to reshape public health in Africa and save thousands of lives, although challenges like establishing trust and overcoming hesitancy among the population remain.

Deep dives

Hedge Funds Thrive by Investing in Natural Disasters

Hedge funds have experienced a highly successful year, with the top 20 funds earning record-breaking returns and tripling their returns from the previous year. One area that particularly stood out was their strategy of investing in natural disasters. As the cost of natural disasters continues to rise, insurance companies and other organizations are turning to Wall Street to help share the financial burden. Hedge funds are buying catastrophic bonds, which are high-risk, high-reward investments that pay off if there is a relatively calm hurricane season. This strategy proved to be the most successful alternative investment last year.

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