An Update on Our New Fund: Stone Ridge Reinsurance Fund
Posted: Farrah Gandhi
Late last year, we added the Stone Ridge Reinsurance Risk Premium Interval Fund (ticker: SRRIX) to most of our clients’ portfolios. To recap, SRRIX partners with reinsurance companies and shares both profits and losses with them. Reinsurance is essentially insurance for other insurance companies. In a calm year with few natural disasters, reinsurance companies are rewarded handsomely, however, they are susceptible to losses in turbulent years like 2017. Stone Ridge has recently sent an update that covers how the fund did in 2017 vs. expectations, and how this may affect the future of the fund and reinsurance market. The report is an interesting dive into this unique asset class that we think will help clients better understand the funds features and risks. If you have any questions about SRRIX, please give us a call.