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Investors in Stone Ridge Asset Management’s Mutual Insurance-Linked Securities (ILS), a New York asset manager focusing on alternative risk premia strategies, are likely to be happy with their returns in 2023. They have accelerated and reached over 40% in the Stone Ridge ILS interval fund strategy.
When you look at the years of low performance or negative returns that this ILS Fund had when it was exposed to major natural disaster events around the world from 2017 through 2022 it appears that most of the decline has been recovered within a single calendar year.
The Stone Ridge Asset Management Reinsurance Premium Interval Fund invests in ILS and Reinsurance-linked Assets with a focus on private quota shares and sidecars. Other collateralized reinsurance agreements and catastrophe bonds are also included.
This strategy exposes the portfolio to large losses in the global catastrophe insurance markets, but also puts it in a good position to take advantage from the vastly improved reinsurance marketplace…