Bermuda-based reinsurance provider Till Capital has purchased a 10 percent stake in Courant Capital Management, an alternative asset management firm in New York. No financial terms were disclosed.
HAMILTON, Bermuda–(BUSINESS WIRE)–Till Capital Ltd. (TSX.V: TIL) (the “Company” or “Till”), a Bermuda domiciled reinsurance provider announced today that it has acquired a 10% interest in Courant Capital Management LLC, a New York-based alternative money management firm. Courant Capital will manage a portion of Till’s assets employing its relative value market neutral strategy covering large cap US equities, an investment approach developed by founding member and Chief Investment Officer, Dr. Mel Mullin.
Till Capital is the result of the merger between royalty manager Americas Bullion Royalty Corp and investment company Kudu Partners LLC. Till utilizes a non-traditional approach to create a company with diversified investments, well-positioned for future growth through access to and strategic deployment of reinsurance premium capital from its wholly owned subsidiary Resource Re Ltd., a Bermuda Class 3A reinsurer. Till Capital commenced trading on April 24th, 2014 seeking to combine the expertise of William M. Sheriff, of Americas Bullion and accomplished market trader and innovator, William A. Lupien.
“Courant fits perfectly with Till’s goal of optimizing capital use from the reinsurance business,” said William Lupien, Chief Investment Officer of Till Management, the wholly owned investment management division of Till Capital. “We look forward to working with Courant.”
William Sheriff, Chairman & CEO of Till Capital said, “Courant’s unique large-cap equity trading strategy, which is designed to generate consistent returns while limiting market risk is ideally designed to provide a growing capital base for our reinsurance business.”
Courant Capital Management LLC
Courant Capital Management LLC is a privately-held US asset management company. The firm was formed in 2009 by industry professionals with decades of experience in relative value trading, risk management and executive administration. Courant’s flagship fund is its Large-Cap Market Neutral Fund LP, a diversified US equity product which has exhibited strong real returns independent from market direction with low risk and low volatility. The fund has a large and diversified portfolio that is built using an innovative stock research and selection process. Courant invests in the most liquid market, US equities, and only in the most liquid stocks of the largest companies. Courant’s product is “market neutral” because the fund owns stocks, its “long” positions, and sells short other stocks, its “short” positions.
Courant holds close to equal numbers of long and short positions, about 120 that it owns and 120 that it sells short. Each position carries an equal dollar value. Maintaining equal value among all positions mitigates the risk from an adverse move in any given stock within its large portfolio. Courant’s 5-year annual performance net of all fees from 2009 to 2013 ranged from 8.4% to 17.32%%. (Note that past performance is not necessarily indicative of future results.)
Till Capital Ltd.
Till Capital’s talented team leads a unique Bermuda-domiciled company with over CAD $42 million in cash and securities engaged in the reinsurance business supported by a hybrid investment strategy. This non-traditional approach creates a company with diversified investments including royalties and physical gold, well-positioned for future growth through access to and strategic deployment of capital. Our goal is to maximize opportunity while mitigating risk, considering assets and opportunities with significant upside potential.