Falcon Private Bank

The Artemis Insurance-Linked Securities Investment Managers & Funds Directory is a one-stop resource for information on insurance or reinsurance linked investment managers and their ILS fund strategies.

Falcon Private Bank - Snapshot:

  • ILS manager or company name: Falcon Private Bank
  • Location (HQ / Domicile): Zurich, Switzerland
  • Date of launch: Jul 2010
  • Assets under management *: $430 million
  • Website link: Falcon Private Bank website

Falcon Private Bank - Details

Company profile:

The fund manager for the Twelve-Falcon ILS funds is Twelve Capital AG.

Institutional sales for the Twelve-Falcon ILS funds is handled by axessum GmbH.

Twelve Capital was incorporated in July 2010 by the five founding partners – Urs Ramseier, Christoph Buerer, Sandro Kriesch, Gion Cavegn and Daniel Grieger. In October 2010, the company became operational. The founders were previously the key members of the Insurance-linked Securities (ILS) investment team at Horizon21 AG, an investment manager directly or indirectly majority owned by Rainer-Marc Frey and Adrian Gut.

The founding Partners of Twelve Capital worked as investment professionals for Horizon21 from 2007 when the ILS initiative was launched. The aim of the team was to build up the ILS portfolio of Horizon21 with two flagship funds and a mandate offering for large investors. The team has a successful six-year+ track record of working together.

The spinout of the entire ILS team from alternative investment manager Horizon21 into Twelve Capital was completed on 1st October 2010. The spinout was supported by Horizon21.

On 14th October 2010, Twelve Capital Holding Company was incorporated, which in turn fully owns Twelve Capital AG. In February 2011, Twelve Analytics AG was incorporated as a subsidiary which holds the intellectual property rights of and managing the proprietary portfolio and risk management software CatEye.

Later in 2011, Bank Sarasin became a white label partner and Twelve managed successfully 2 funds for Bank Sarasin.
By mid-2013, Twelve Capital was managing approximately USD 2 billion. In June that same year, Twelve Capital became the investment manager for the ILS strategy of the Falcon Private Bank.
Twelve Capital’s sole focus is investment management; offering its clients appealing investment opportunities within the global insurance sector, currently ILS and Insurance Debt.

Team size and structure:
For ILS: 4 Portfolio Manager, 1 Underwriter, 1 Legal Structuring, 1 Risk Management, Total 30
Number of strategies (how many funds, sidecars or strategies):

5 funds and separate managed accounts

Offers private managed accounts?

Yes

Strategy:

We believe Twelve Capital has the following competitive advantages:

Experienced and broad team:
Investing in ILS is complex and requires a team of experts with very specific knowledge and experience. The investment professionals of Twelve Capital collectively have more than 100 years of experience in insurance investing. Moreover, the team is diverse and multi-disciplined with backgrounds in mathematics, actuarial sciences, legal, structuring, reinsurance pricing and underwriting as well as investment management, covering the entire value chain and end-to-end processing including packaging.

Proven track record:
ILS is a relatively new asset class that attracts an increasing number of investors as well as a growing number of new providers. Within this emerging asset class, the founders of the Twelve Capital team have been investing together since 2007. During this time the team has built up a strong track record in all types of ILS investments.

Flexible offering:
Our flexible set up helps us to build tailor made solutions for all types of investors. We offer mutual funds and segregated portfolios, supported by an operational set-up to deliver tailor made reporting for all of these types of investments.

Robust operational & risk management platform:
Managing ILS portfolios requires a deep understanding of the insurance market and a sophisticated risk management framework. The Twelve Capital investment team operates a robust investment process supported by a proprietary risk management tool, CatEye, developed by Twelve Analytics.
The investment universe is constantly analyzed to identify opportunities that match each portfolio’s target risk/return levels.

Securities are classified according to a range of characteristics such as peril, geography, attachment level and trigger type. Each portfolio is carefully constructed to contain a diversified set of exposures to achieve the portfolio’s risk-return objectives. Our proprietary portfolio management software is designed to manage multiple instruments and portfolios.

Focus and dedication:
Twelve Capital is majority owned by its senior investment professionals and everybody shares in the success of the business. The firm’s culture promotes dedication to clients, integrity, diversity, enthusiasm, and shared vision. We run a flat organizational structure reinsurance pricing and underwriting as well as investment management, covering the entire value chain and end-to-end processing including packaging.

Assets under management development (year-end):

2012: $1 billion, 2013: $2.2 billion

Twelve-Falcon Insurance Linked Strategy Fund

The Twelve-Falcon Insurance Linked Strategy Fund invests in CAT Bonds, which insure natural hazards. The fund is open ended, a UCITS IV fund with weekly liquidity and registered for public distribution in Germany, Luxemburg and Austria.

The Twelve-Falcon Insurance Linked Strategy Fund return by year:

2011: -0.14%, 2012: 6.20%, 2013: 6.74%, 2014: 3.92%, 2015: 3.48%

Type of investment strategy (fund, sidecar etc):

Open-ended

Launch date:

Dec 2013

Latest AuM:

$290 million

Underlying asset types:

Cat Bond

Target return:

3m MM + 3-4%

Annualised return:

+3.65%

Best monthly return:

+2,11% (September 2011)

Return since inception:

22.15%

Sharpe ratio:

4.58 (over last 3 years)

Percent positive months:

94.44%

Annualised standard deviation:

1% (over last 3 years)

Twelve-Falcon Insurance Opportunities Fund

The Twelve-Falcon Insurance Opportunities Fund invests in CAT Bonds, which insure natural hazards. The fund is open ended, a UCITS IV fund with weekly liquidity and registered for public distribution in Germany, Luxemburg and Austria.

Twelve Falcon Insurance Opportunities Fund return by year:

2014: 9.10%, 2015: 6.72%

Type of investment strategy (fund, sidecar etc):

Open-ended

Launch date:

Nov 2013

Latest AuM:

$70 million

Underlying asset types:

Cat Bond

Target return:

3m MM + 5-6%

Annualised return:

+5.17%

Best monthly return:

0,78% (January 2014)

Return since inception:

16.29%

Sharpe ratio:

4.13 (over last 1 year)

Percent positive months:

100%

Annualised standard deviation:

1.56% (over last 1 year)

Disclaimer:

The Artemis Insurance-Linked Securities Investment Managers & Funds Directory is provided as-is. Best efforts are made to ensure the contents are accurate at the time of publication but there may be some omissions. Please contact Artemis should you require a change to your listing.




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