AQR to launch first catastrophe bond fund strategy

by Artemis on October 2, 2014

Investment management firm AQR Capital Management LLC has registered its first catastrophe bond fund with the SEC, which would position the fund for launch to investors in 2015.

The new fund, which was registered with the SEC under the name AQR Catastrophe Bond Fund LP, will be capitalised with AQR’s own funding to begin with.

The fund will target institutional clients once up and running. In the meantime the AQR cat bond fund will be capitalised with AQR’s own funds, which will help it to build a track-record.

If or when the AQR Catastrophe Bond Fund is opened up to institutional investors the minimum commitment will be $5m, according to the SEC filing.

AQR already operates two funds focused on catastrophe reinsurance, but this fund will be its first attempt to bring a balanced cat bond strategy to investors.

The initial filing at the SEC had the fund named the ‘AQR Catastrophe Bond Index Fund’, but this has since been corrected with a new filing, to name the fund the ‘AQR Catastrophe Bond Fund’ to avoid any confusion over the strategy, as it is not an index-tracker.

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