Stone Ridge High Yield Reinsurance Risk Premium Fund Class I (SHRIX)

Overview

The company operates within the financial sector, focusing on investment strategies that leverage the potential of digital assets, specifically bitcoin, without directly investing in them. It targets achieving its investment objectives primarily by engaging in bitcoin futures contracts and investing in pooled investment vehicles that have exposure, either directly or indirectly, to bitcoin. An essential aspect of its strategy includes maintaining significant holdings in safer, traditional forms of investments such as cash, U.S. government securities, mortgage-backed securities issued or guaranteed by U.S. government agencies, Agency MBS (Mortgage-Backed Securities), municipal debt securities, money market funds, and investment-grade securities from foreign governments, supranational entities, and to a lesser extent, corporations. Despite its innovative approach toward digital asset investing, the fund adopts a non-diversified investment strategy.

Products and Services

• Bitcoin Futures Contracts

  The company invests in bitcoin futures contracts as a primary strategy to gain exposure to the price movements of bitcoin without the need to invest in the cryptocurrency directly. Futures contracts are agreements to buy or sell the underlying asset at a future date at a predetermined price, allowing the fund to speculate on the future price of bitcoin.

• Pooled Investment Vehicles

  It diversifies its investment strategy by allocating funds to pooled investment vehicles that invest in bitcoin, either directly or indirectly. This allows the fund to benefit from the expertise of specialized fund managers in the cryptocurrency space, further diversifying its investment approach without the direct ownership of digital assets.

• Traditional Safe-haven Investments

  The fund maintains significant holdings in traditional investments, such as:

  • Cash and Money Market Funds: Offers liquidity and stability, providing a safety net and ensuring that the fund has the flexibility to react to market changes.
  • U.S. Government Securities and Agency MBS: Investments in United States treasury and mortgage-backed securities issued or guaranteed by U.S. government agencies offer low-risk income.
  • Municipal Debt Securities: Investments in the debt of local municipalities, considered to be low-risk, provide tax-exempt interest income.
  • Investment Grade Securities: Holdings in high-rated securities issued by foreign governments, supranational entities, and corporations add an extra layer of diversification and stability.