Stone Ridge Asset Management, the New York based alternative risk premia focused investment manager, is set to liquidate the Post-Event Reinsurance Fund that it originally launched back in 2015, Artemis has learned from company filings.Stone Ridge Asset Management .The Post-Event Reinsurance Fund was designed as a strategy that would kick into life after a major catastrophe event caused a market dislocation in the reinsurance industry, providing a fresh vehicle for Stone Ridge’s investors to deploy capital to opportunities that emerged in the space after meaningful draw-downs hit the market.It was designed to benefit the Stone Ridge investor base, by prioritising access to existing allocators to the manager’s insurance-linked securities (ILS) fund strategies, but also insurance and reinsurance industry participants, by bringing efficient reinsurance capital to market at a time of stress.

Stone Ridge had previously said that, as an asset manager with a focus on reinsurance, it was critical to be able to respond to both attractive opportunities after a market dislocation from a major catastrophic event, as well as demonstrating consistency by being there to serve both investor clients and reinsurance cedents.As a result, the Stone Ridge Post-Event Reinsurance Fund had been structured to respond to any dislocation, being able to supply stable, long-term capital after a catastrophically large loss event, and as a vehicle to allow investors to maintain or grow their exposure to the reinsurance asset class in such an eventuality.Back in early 2017, .

While 2017 then turned into one of the largest loss years in reinsurance market history, this fund was not in the end used, we believe, with Stone Ridge able to manage investor demand through its range of existing mutual ILS funds and private ILS strategies, we believe.Now, a filing this week states that the Stone Ridge Post-Event Reinsurance Fund is now set to be liquidated, although no specific reason is given.The filing also states that shareholder approval was not required, suggesting that the fund structure remained unused, at least at this time.

We suspect the reason for deregistering the fund and liquidating it will be that Stone Ridge Asset Management’s reinsurance strategies have expanded both in size and optionality for its investors, with reinsurers such as Longtail Re and Short Tail Re now established alongside the mutual catastrophe bond and ILS focused funds, and its private ILS funds also having grown in stature.Meaning Stone Ridge has a much more established and larger reinsurance and ILS investing infrastructure today, than it had back in 2015 when the Post-Event Reinsurance Fund was launched.Stone Ridge already has plenty of routes to bring new capital from its investors to market, in the event of any catastrophic event and resulting market dislocation.

Meaning a specific structure to support post-event investor capital flow may now be seen as unwarranted by the investment manager, given the optionality to do so within the rest of the Stone Ridge reinsurance investment platform.It’s worth also noting that the Post-Event Reinsurance Fund was designed to begin offering shares if there was a material drawdown in Stone Ridge’s reinsurance and ILS focused Interval Fund strategy and would then invest back into that strategy.The Stone Ridge Reinsurance Risk Premium Interval Fund has not been growing meaningfully in recent years, with more assets flowing to the manager’s catastrophe bond focused mutual fund and to its range of private reinsurance and ILS strategies, so the Post-Event fund may no longer be seen as a particularly necessary part of the manager’s infrastructure in relation to the Interval fund at this time.

Stone Ridge Asset Management .At this time the alternatives specialist manager has almost $4.8 billion in assets in its two mutual cat bond and ILS funds, while its assets are understood to have grown further in its private ILS funds and other reinsurance structures.In total, across its asset management business platforms, Stone Ridge had over $23 billion in AUM (after accounting for duplication between discretionary and non-discretionary assets) as of the end of 2024.

Which shows the scale of the firm and breadth of its offerings, which might further support our assumption that this Post-Event Reinsurance Fund was no longer seen as a necessity to keep maintaining..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.