The Choice of Investors (by Eugeniu Guzun, HedgeNordic)
From the eight Nordic hedge funds recognized as “Top Performer” winners at the Investors Choice Awards 2020 in the EMEA region, only Ress Life Investments went on to win an “Investors Choice” award. “This award gives us recognition for our long-term commitment to the asset class in which we have built a solid track record since the fund’s inception in 2011,” Cristina Lugaro (pictured right), Institutional Sales at Resscapital, comments on the distinction.
The “Top Performer” winners, which were announced earlier this summer, competed for the “Investors Choice” awards in their respective categories. The fund managed by Stockholm-based specialist boutique hedge fund manager Resscapital was recognized for long term performance in a “Specialist” category that featured Rhenman Healthcare Equity L/S and four other “Top Performer” winners in contention for the “Investors Choice” award.
The shortlisted funds for the Investors Choice Awards – recognized as “Top Performer” winners – are selected purely based on quantitative risk-adjusted returns. The “Long-Term” award categories, one of which was won by Ress Life Investments, cover the period from January 2017 to April 2020. The winners of the Investors Choice Awards, meanwhile, are determined by a jury board of institutional investors that scores the “Top Performers” on a range of qualitative criteria, including investment processes, risk framework, transparency, team and ability to generate alpha.
Ress Life Investments, which buys life insurance policies in the United States in the secondary market for these policies, has also been named the “Best Nordic Hedge Fund” and “Best Nordic Multi-Strategy Hedge Fund” at this year’s edition of the Nordic Hedge Award. The fund overseen by Anton Pozine (pictured center), Head of Portfolio Management, delivered an annualized return of about seven percent in the past 36 months through the end of June. “During the last five years, the volatility of the fund has been only four percent and the risk-adjusted return, measured by the Sharpe ratio, is an excellent 1.4,” emphasizes Lugaro. “We believe that being an established player that selectively purchases policies will reduce risks and increase returns for our investors,” she continues. Ress Life Investments currently has 190 million US dollars in assets under management.
Ress Life Investments was up two percent in the first half of 2020 and was flat to marginally positive in the first quarter of the year. Resscapital’s strategy of investing in the secondary market for U.S. life settlements exhibits no correlation to traditional asset classes. The fund has been immune to the broader market volatility triggered by the COVID-19 pandemic and its socio-economic consequences. As Jonas Mårtenson (pictured left), the founder of Resscapital, previously told HedgeNordic, “the main risk factor in a life insurance portfolio – longevity – is fundamentally uncorrelated to other major asset classes.”
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Resscapital AB is an alternative investment fund manager (AIFM) authorised and regulated by the Swedish Financial Services Authority (Finansinspektionen).
We have since 2011 bought a diversified life insurance portfolio on behalf of Ress Life Investments, which is listed at NASDAQ Copenhagen. Proprietary portfolio management systems and pricing models have been developed. The company also collaborates with independent medical underwriters specialising in senior mortality.
The management team has complimentary backgrounds and international experience from having worked at major banks, institutional investors and hedge funds. The board of directors consists of both successful entrepreneurs and senior managers with extensive experience from the financial industry.
Attractive Long-Term Returns
Ress Life Investments A/S purchases US life insurance policies in the secondary market. The company owns a diversified portfolio and policies are issued by over 50 highly rated US life insurance companies. The investment objective is to provide attractive uncorrelated returns in USD over the long-term. Ress Life Investments is listed at Nasdaq Copenhagen since 2015.
Attractive risk-adjusted return – the target return is 7% per annum in USD without any leverage.
Low volatility – a well-diversified life insurance portfolio offers investors stable and attractive risk-adjusted returns. Monthly historical volatility during the last five years is 4%.
Risk diversification – the return profile of the life insurance portfolio is characterised by low correlation to other asset classes, which makes the strategy attractive for investors seeking risk diversification.
Exchange-traded – the company is listed at NASDAQ Nordic and a market-maker provides daily prices.
Ress Life Investments A/S is a limited liability company incorporated in Denmark. The company is an alternative investment fund (AIF) managed by Resscapital AB, a limited liability company incorporated in Sweden. Resscapital AB is authorised as an alternative investment fund manager (AIFM) and supervised by Finansinspektionen, the Swedish Financial Supervisory Authority.
The depositary for Ress Life Investments A/S is Artha Fondsmaeglerselskab A/S. The administrator is Citco Denmark ApS, which is part of the Citco Group. The independent board consists of four members with extensive experience from the financial markets. Ress Life Investments A/S is audited annually by Deloitte.
Ress Life Investments A/S is admitted to trading and official listing on NASDAQ Copenhagen. The company’s short name is RLAINV, ISIN DK0060315604. Current share prices can be found under the segment – Alternative Investment Funds on NasdaqOMXNordic.
Danish and Swedish retail investors and professional/accredited investors may also subscribe for shares on a monthly basis at the company’s current net asset value per share.