Jaffa Capital Management, LLC

Company profile:

Jaffa Capital Management LLC is a specialized insurance-focused investment firm delivering capital-efficient solutions for insurers’ balance sheets, while providing institutional investors with stable, uncorrelated returns. With a focus on fixed income strategies designed for the insurance industry, Jaffa’s leadership team brings over two decades of experience from the world’s leading investment and insurance institutions. We specialize in creating tailored solutions to optimize insurance capital and balance sheets, while generating consistent, low-volatility alpha and minimizing credit risk.

Reserve/Collateral Asset Management:

Jaffa’s lower-volatility investment strategies enable its insurance company clients to focus on generating underwriting profit.

Our expertise lies in crafting fixed income portfolios that emphasize investment grade, liquid securities, including U.S. government agency bonds, asset-backed securities (ABS), and mortgage-backed securities (MBS). By focusing on investment grade assets, we leverage a disciplined and research-intensive investment process rooted in macroeconomic analysis, relative value, structure arbitrage, and ratings models arbitrage to capitalize on market inefficiencies. This approach ensures stable returns while aligning with the risk tolerances of insurers.

Jaffa’s strategies prioritize reducing risks tied to insurance liabilities through reducing credit risk to both insurers and cedants, and accounting for asset-liability correlations. The firm proactively manages portfolios to enhance capital efficiency, leveraging its core expertise in minimizing interest rate risk, credit risk, liquidity risk, and asset-liability correlations both directly and as measured in a regulatory capital framework. The result is a stronger balance sheet and improved financial flexibility for our clients.

Jaffa Capital Fund:

Since 2023, Jaffa has enabled qualified investors to harness the same expertise in asset-liability interplay that drives value for its insurance company clients.

Jaffa Fund invests in Property & Casualty sidecars and Quota Share ILS with a focus on low volatility, low catastrophe, high frequency attritional loss portfolios, where Jaffa’s asset management strategy has the greatest impact. The fund prefers to support seasoned underwriting teams to achieve internal and external capital targets, and to participate in market dislocations. Jaffa Fund often works alongside other reinsurers and ILS funds who seek the higher underwriting profit of CAT and XOL risk.  Jaffa Fund mainly supports mature programs and regional/mid-size U.S. insurance carriers.

Team size and structure:

Dedicated team of twelve seasoned professionals with an average of 20+ years experience drawn from top global insurance and investment institutions.

Number of strategies:

Multiple strategies curated for insurance investors, with a core focus on fixed income and reinsurance-linked portfolios.

Strategy details:

• Core fixed income for insurers: Emphasis on investment grade securities (e.g., U.S. agency, ABS, MBS).
• Reinsurance-linked investments: Sidecars and quota share arrangements focused on low-severity, high-frequency risks.
• Custom solutions: Tailored portfolios optimizing capital efficiency and balance sheet outcomes.

Offers private managed accounts?

Yes