DePrince, Race & Zollo

DePrince, Race & Zollo specializes exclusively in insurance-linked securities (ILS), including catastrophe bonds, collateralized reinsurance, and insurance-linked notes. These instruments generate returns tied to natural catastrophe events rather than traditional market factors.

Unlike hedge funds that pursue event-driven or long/short strategies, DePrince, Race & Zollo targets returns from property catastrophe risk premia. Its returns are structurally uncorrelated with equity and credit markets, driven by actuarial modeling of natural disasters such as hurricanes, earthquakes, and severe storms.

The firm competes with other ILS managers including Nephila Capital (a Markel company), Twelve Capital, Fermat Capital Management, and LGT ILS Partners. These firms also source catastrophe risk from insurance and reinsurance companies and package it into investable securities.

DePrince, Race & Zollo operates as a registered investment adviser and typically manages capital for institutional investors through private funds and managed accounts. Investors include pension funds, endowments, foundations, and family offices seeking non-correlated returns.

The firm underwrites exposures to global natural catastrophes, with a focus on US hurricane, US earthquake, European windstorm, and Japanese earthquake risks. These exposures are sourced through catastrophe bonds and private reinsurance contracts.

Public filings and industry sources indicate DePrince, Race & Zollo is exclusively focused on insurance-linked securities and catastrophe risk. No public evidence suggests the firm invests in equities, fixed income, real estate, or alternative asset classes outside of ILS.

DePrince, Race & Zollo manages capital from institutional investors, not a single family or foundation. The firm's client base includes pension plans, endowments, foundations, and insurance companies seeking catastrophe risk exposure.