H E D G E F U N D SO V E R V I E W

N E W Y O R K   |   D A L L A S   |   H O U S T O N   |   L O S A N G E L E S   |   M I A M I   |   P A L M B E A C H   |   P H I L A D E L P H I A

P O R T L A N D   |   S A N F R A N C I S C O   |   W A S H I N G T O N D C

O U R A P P R O A C H

For over 80 years, Crystal & Company has been a leading strategic risk and insurance advisor to financial institutions building strong, trusted relationships within the financial and insurance communities. Hedge funds comprise a significant portion of our client base and we have a deep understanding of their specific needs. Our professionals provide creative and strategic solutions that directly address the unique needs of our hedge fund clients.

T H E C R Y S T A L D I F F E R E N C E

Technical expertise, market relationships, and business acumen are the keys to designing and negotiating effective coverage. Understanding how to apply these elements in the service of our clients’ broader risk management and business objectives is what distinguishes the professionals at Crystal & Company.

: Our Financial Institutions Group is steadfast in keeping up with the service trends and ever-changing rules set forth by regulators. We provide advice and offer insurance solutions for these exposures as well as handle client requests on a daily basis.

: We leverage our relationships in the insurance marketplace to help hedge funds accomplish their risk management objectives and business goals.

: Our team is distinguished by our experience and understanding of the hedge fund industry. We develop long-lasting relationships with our clients, who recognize us for our knowledgeable advice and fierce advocacy on their behalf.

: We develop tailored products and solutions to address the unique exposure faced by each hedge fund.

S O L U T I O N S

: Professional Liability / Errors & Omissions An Errors & Omissions policy provides coverage to hedge fund managers for claims arising out of

alleged act, error, omission, neglect, or breach of duty committed in connection with the perfor-mance of investment advisory or investment management services. This coverage is typically part of a blended Management and Professional Liability Program which is intended to provide both Directors & Officers and Errors & Omissions coverage for hedge fund managers, the hedge funds themselves and any general partners, managing members, or boards of directors.

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Crystal & Company is a leading strategic risk and insurance advisor, addressing clients’ risk management, insurance brokerage, and

employee benefits consulting needs. The firm is comprised of more than 400 professionals, each distinguished by their technical

expertise and industry-specific knowledge, and driven by their passion for client service. Crystal & Company is headquartered in New

York with 10 regional offices throughout the country, placing over $1 billion in premiums annually in the global insurance marketplace.

Established in 1933, the company has sustained its independence through 80 years and three generations of Crystal family ownership

and management.

Crystal & Company is a member of Brokerslink, a global alliance of leading independent insurance brokerages spanning more than

80 countries and 300 cities across the world.

© 2014 Crystal & Company. All Rights Reserved. 9/14

: Management Liability / Directors & Officers Liability Hedge funds are at risk of civil and criminal litigation being brought against their management

team. A Directors & Officers policy provides coverage for individual directors, officers, partners, and the hedge funds for alleged act, error, omission, neglect or breach of duty committed in their management capacities. This coverage is typically part of a blended Management and Professional Liability Program.

: Employment Practices Liability Even a hedge fund manager with sound human resources policies and procedures can experience

an employment-related claim. In order to address this potential exposure, an Employment Practices Liability policy may be purchased, either on a stand-alone basis, or as part of a Management and Professional Liability Program. This policy provides coverage for defense costs and damages as a result of employment-related claims, such as discrimination, harassment, retaliation, and wrongful termination.

: Fiduciary Liability Hedge fund managers are deemed to act as fiduciaries when they have discretion over certain

types of assets. A Fiduciary Liability policy is designed to provide coverage for claims brought by employees, participants, and beneficiaries of hedge fund manager-sponsored health, welfare, and benefit plans. This coverage may be purchased on a stand-alone basis, but is often included as part of a Management and Professional Liability Program.

: Cyber Liability This policy affords two types of coverages: first-party reimbursement and third-party liability.

First-party coverage reimburses the hedge fund manager for costs associated with investigating and terminating a security breach and notifying, working with, and offering remedial services to potentially affected clients. Third-party liability provides coverage for claims arising from a hedge fund manager’s failure to protect sensitive personal or corporate information.

: Fidelity Bonds A basic fidelity bond provides coverage for loss of money, securities, or other property owned

or held by a hedge fund manager when loss is due to the dishonesty of a hedge fund manager’s employees. When assets which are subject to ERISA are being managed, a hedge fund manager is required to provide bonding for a limit equal to 10% of the asset value of the plan, subject to a $1,000 minimum limit and up to a $500,000 maximum.