Mutual Fund Plunges 11% This Week as Hurricane Nears Florida
- Stone Ridge fund makes investments in catastrophe bonds
- Reinsurance funds have had solid, uncorrelated returns
Hurricane Irma on a Collision Course With Florida
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Stephen Barnes suffered damage from Hurricane Irma even before it hits Florida.
He owns Stone Ridge Reinsurance Risk Premium Interval Fund, a mutual fund that dropped 11 percent this week as the hurricane wreaked havoc in the Caribbean. In calmer times, Barnes has enjoyed solid returns uncorrelated with stocks and bonds while accepting risks that the fund that may be on the hook when disaster strikes.