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Stone Ridge Asset Management Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

Stone Ridge Asset Management

Stone Ridge Asset Management offers its investment advisory services to private and registered funds, meaning it doesn't advise individuals on their portfolios. The New York-based firm is known for quota share reinsurance investing. Its website says that the firm specializes in “delivering valuable, diversifying return streams sourced from alternative risk exposures – not alpha.” In January 2020, it was reported that the firm had begun managing third-party investor assets for reinsurance and insurance-linked securities separate from its mutual funds.

Stone Ridge Asset Management Background

Stone Ridge Asset Management has been providing services as a registered investment advisor (RIA) since 2012. It formed as a limited liability company (LLC) under laws in the state of Delaware. However, it’s based in New York City and has its financial engineering office in Beijing. 

CEO Ross Stevens is the firm's principal owner.

Stone Ridge Asset Management Client Types and Minimum Account Sizes

Stone Ridge’s only current clients are banking or thrift institutions, investment companies, pooled investment vehicles and insurance companies. The firm may accept managed account clients in the future. 

Because the firm does not currently work with individual clients, the minimum account size requirement is not applicable. For fund minimums, check the fund prospectus.

Services Offered by Stone Ridge Asset Management Review

Stone Ridge serves as an advisor to a range of investment companies through private or registered funds. When working with these clients, Stone Ridge provides a funds document that describes investment objectives, guidelines and requirements. Such information would be outlined in the fund prospectus.

The firm currently sponsors or administers the following private funds: 

  • Drug Royalties Fund II LLC,
  • Drug Royalties Offshore Fund II LLC
  • Drug Royalties Cayman Fund II LP
  • Stone Ridge Alternative Lending Issuer Trust I

The Drug Royalties Funds are exclusively invested in Oberland Capital Healthcare II LP.  As its name suggests, Stone Ridge Alternative invests in alternative lending-related securities. 

Stone Ridge can provide eligible investors who wish to invest in these private funds with documentation detailing investment strategies, methods of analysis and material risks. 

Stone Ridge Asset Management Investing Philosophy

Stone Ridge utilizes various investment strategies such as reinsurance risk premium, variance risk premium, alternative lending risk premium and factor-based equity risk premium. Generally, though, it takes a passive approach to investing. So it will typically steer away from market timing or buying undervalued securities, believing, as it states, “Competition quickly drives prices to fair value, leaving only risk premium.” Instead, the firm takes on “intentional,” controlled and intelligent risks because “guessing the future is no way to build long-term wealth.” 

Fees Under Stone Ridge Asset Management

Stone Ridge’s fees are non-negotiable and are laid out in each fund’s offering documents. (The firm doesn’t make these public.) Funds may also incur other fees and expenses, including custodial fees and expenses, transfer agency fees and more. 

What to Watch Out For

The firm reported one disclosure on its Form ADV. It involved an alleged violation of a Chicage Mercantile Exchange rule regarding certain exchange-for-related-position transactions during the first half of 2016. In February 2018, Stone Ridge settled the matter and paid a $40,000 fine.

Opening an Account With Stone Ridge Asset Management

To contact Stone Ridge, send an email or call the firm over the phone at (212) 257-4750.

All information was accurate as of the writing of this article.

Tips for Rookie Investors 

  • SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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How Long $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We weighed potential expenditures for a prospective retiree with a  $1 million nest egg to assess how many years that fund would cover in retirement in America’s largest cities.

We applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in metro areas across the U.S.

We assumed the $1 million would grow at a net annual return of 2% after inflation. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.