The IRIS investment philosophy could be described as a kind of “reinsurer’s approach” of capital markets risks as it relies on: 

• A prudent approach focusing on capital preservation through a real and efficient diversification, together with precise identifications and quantifications of “worst case scenario”
• An opportunistic approach where capital is deployed only when it is most needed, when there is an unbalance of supply and demand ensuring an optimal remuneration of the risk
• As a result, the portfolio may not always be 100% invested and the cash part of the allocation can be high from time to time

More specifically, IRIS’ strategy combines: 

• An opportunistic approach aiming at monetising dislocations and capturing “alpha” on specific implied parameters – or second order risks – primarily related to structured equity markets. These parameters (such as correlation, volatility, dividends, …) exhibit mean reversion characteristics and offer significant positive carry provided the entry point – which is of paramount importance – is right.   

Note: This approach is commonly called Alternative Risk Transfer (ART)

• An exposure to innovative strategies capturing the high margin low correlation alternative beta of the (re)insurance risk market through thoroughly selected insurance linked securities (ILS)

• A combination of risk-controlled strategies, protected assets, and income strategies including structured products offering a high level of capital preservation and a low exposure to risk 

• A cash position large enough to fund second order risks opportunities when timing is right. 

The IRIS strategy aims at delivering a robust mid to high single digit return with low correlation to Equity & Bonds markets.