MetLife Inc., the largest U.S. life insurer, said it’s seeking to exit most of its hedge-fund portfolio after a slump in the investments.
The insurer is seeking to redeem $1.2 billion of the $1.8 billion in holdings, a process that may take a couple of years to complete, Chief Investment Officer Steven Goulart said Thursday in a conference call discussing first-quarter results at the New York-based company. The portfolio, which posted negative returns in the quarter, was cut by about $600 million in 2015, he said.
“It’s had up-and-down years and really it’s just too inconsistent, we think, in actual performance,” Goulart said. “What we’ll be left with is a small portfolio of really our most consistently performing managers in hedge funds.”
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