FYI: Earlier this week, I addressed the question of whether where you live should impact your decision to invest in reinsurance, and specifically in the fund I recommend investors consider (SRRIX).* Today I’ll address a second common concern about the asset class: the risk of large losses (fat tail risk) inherent in reinsurance contracts. (Full disclosure: My firm, Buckingham Strategic Wealth, recommends Stone Ridge funds in constructing client portfolios.)
Regards,
Ted
http://www.etf.com/sections/index-investor-corner/swedroe-high-uncorrelated-risk
