According to a survey undertaken by publisher Pensions & Investments, Markel owned insurance-linked securities (ILS) investment manager Nephila Capital is one of the most institutional hedge fund managers, based on the profile of its end-investors.
Every year Pensions & Investments (P&I) surveys the hedge fund industry and provides a ranking of the largest managers, as well as other interesting data points.
Nephila Capital, being the largest ILS and reinsurance fund manager, has featured a number of times in these rankings.
In 2021, out of 107 hedge fund managers surveyed by the publisher, Nephila Capital has come in at 39th, with a cited just under $9.8 billion of assets under management as of July 2021.
That AuM figure is up 2.7% on the prior year, P&I said.
Nephila is in good company, being surrounded by the likes of UBS O’Connor, Cheyne Capital, Balyasny Asset Management and Systematica Investments, all respected hedge fund managers.
Hedge fund giant Bridgewater Associates tops the ranking with an enormous $105.7 billion of assets, followed by former Nephila investor Man Group with $76.8 billion and Renaissance Technologies with $58 billion.
But Nephila Capital is unique in the list, as the only ILS fund manager featured, it appears.
D. E Shaw, an asset manager that does allocate to some reinsurance and ILS positions, is listed in sixth with almost $39.8 billion of assets under its management.
Interestingly, P&I also ranks the same managers in terms of how institutional they are, as in how institutional their investor base is.
Here, Nephila Capital ranks a lot higher, at 8th in the list of 46 hedge fund managers that this information could be derived for.
This ranking is based on the percentage of total discretionary assets managed in hedge funds worldwide for institutions, hence the “most instutional” hedge fund managers.
With Nephila Capital reading across positively for the rest of the ILS market with a 99% score, in terms of how institutional quality its assets under management are.
The insurance-linked securities (ILS) asset class and other reinsurance linked investments are considered most suited to institutional and sophisticated investors, so Nephila’s ranking drives this home and shows that the ILS market would generally score highly in terms of institutional quality.