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 *: $5.32 billion (AuM as at Oct 31st 2020, private fund estimate included)
- Website link: Stone Ridge Asset Management website
Stone Ridge Asset Management - Details
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):
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):
$1 billion as at October 31st 2020
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):
$2.82 billion at October 31st 2020
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 assumed that Stone Ridge utilises its Longtail insurance and reinsurance platform, as well as the Cayman Islands based Longtail Fund.
$1.5 billion of funds and commitments at Q4 2019.
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