Stone Ridge Asset Management
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.
Stone Ridge Asset Management - snapshot
- ILS manager or company name: Stone Ridge Asset Management
- Location (HQ / Domicile): New York
- Date of launch: 2012
- Assets under management *: $2.83 billion (registered fund AuM as at Apr 30th 2023)
- Website link: Stone Ridge Asset Management website
Stone Ridge Asset Management - Details
Company profile:
Stone Ridge focuses on delivering valuable, diversifying streams of returns sourced solely from alternative risk exposures – not alpha. Stone Ridge believes strongly in markets and strongly in the link between risk and return and leverages this link to create global opportunities for portfolio enhancement with a family of risk-specific strategies and products.
Stone Ridge Asset Management operates three insurance and reinsurance linked investment funds, investing its assets in instruments ranging from catastrophe bonds, to sidecars and quota shares.
Number of strategies (how many funds, sidecars or strategies):
– 3 registered funds investing in ILS and reinsurance (AUM $2.83 billion at April 30th 2023).
– Numerous private funds and managed accounts with ILS and reinsurance exposure (AUM estimated at $1.5bn+).
Stone Ridge High Yield Reinsurance Risk Premium Fund
The Stone Ridge High Yield Reinsurance Risk Premium Fund aims to gain a high level of total return, through managing its current capital and new income.
The Fund’s primary focus is to invest in reinsurance-related securities as this is seen as vital in reaching investment objectives. The Fund will mainly invest in Quota Share Notes and event-linked securities, however, the Fund will also reserve some capital as potential to invest in other securities, including cash and cash equivalents, U.S Government securities and registered investment companies.
Type of investment strategy (fund, sidecar etc):
Mutual fund
Launch date:
Feb 2013
Latest AuM:
$1.67 billion as at April 30th 2023
Stone Ridge Reinsurance Risk Premium Interval Fund
Stone Ridge Reinsurance Risk Premium Interval Fund is a unique closed-end investment fund with a primary objective to achieve long-term capital appreciation.
The Fund’s primary focus is to invest in reinsurance-related securities as this is seen as vital in reaching investment objectives. The Fund will mainly invest in Quota Share Notes and event-linked securities, and a significant portion of the Fund’s portfolio will be invested in high yield, high risk securities.
The ‘Interval’ aspect of the fund is essentially a hybrid financial investment strategy. An interval fund enables periodic share repurchases for investors, as a means of providing liquidity. This is done so the fund can access a higher amount of illiquid investments – to ensure the collateral is accounted for.
Stone Ridge defines the date & time investors can move in and out of the fund. The interval fund will offer investor access to more illiquid reinsurance investments which usually boast a higher return.
Typically the interval fund will benefit investors with a more long-term investment plan while still providing the opportunity to cash out in advance.
Type of investment strategy (fund, sidecar etc):
Mutual fund
Latest AuM:
$960 million at April 30th 2023
Stone Ridge Diversified Alternatives Fund
This multi-strategy fund also invests in catastrophe bonds and some collateralized reinsurance quota shares.
The Stone Ridge Diversified Alternatives Fund seeks to generate total returns from diverse investment strategies
that the manager believes have the potential for attractive returns and are diversifying from stocks and bonds. These
strategies include Reinsurance, Market Risk Transfer, Style Premium Investing, Alternative Lending, Single
Family Real Estate and Bitcoin.
Latest ILS only AuM:
$210 million at April 30th 2023
Private reinsurance quota share strategy
Stone Ridge also invests in quota shares through a private strategy on behalf of large institutional investors. The manager raised $1.5 billion of commitments and funds for deployment into quota shares through this strategy in the last quarter of 2019. It’s not clear how the private reinsurance fund assets have developed since then.
In addition, Stone Ridge manages more diversifying re/insurance strategies using its Longtail insurance and reinsurance platform, as well as the Cayman Islands based Longtail Fund.
AuM estimate:
$1.5 billion of funds and commitments since Q4 2019.
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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.
*Note: Assets under management are prone to fluctuation so the figures here are either the best available or last submitted by included managers.
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