Investment manager MLC has hired Bridgewater Associates and Nephila Capital to its Long Term Absolute Return (LTAR) strategy.
Bridgewater will manage the alpha portion of MLC's portfolio and Nephila Capital will oversee MLC's insurance-related investments (IRI).
IRIs are products that derive their returns from insurance-related risks such as hurricanes or earthquakes.
The sellers of IRIs are reinsurance companies that use the products to access capital markets.
Nephila Capital has been managing IRIs on behalf of institutional clients since 1998.
"Nephila Capital is one of the most experienced investment firms in this area of insurance securitisations," MLC chief investment officer Chris Condon said.
Condon said both investment managers would add greater diversification to the LTAR strategy.
"Both of these investments require a long-term investment perspective that is fearlessly independent of traditional approaches. More importantly, these investments are uncorrelated to other sources of return," Condon said.
