An American alternative investment manager with a Bermuda office has launched a new scheme, expanding on the firm’s original higher-yield strategy.

Specialising in collateralised natural catastrophe event reinsurance investments, the independently-operated company’s new strategy was launched January 1 across multiple mandates with a number of institutional investors.

The Bermuda subsidiary, Elementum (Bermuda) Ltd, was launched in 2011 as a sub-adviser to Elementum Advisors, LLC and focuses on the collateralised reinsurance investments component of the overall investment management business, from its Cumberland House office, on Victoria Street.

The Chicago-based firm’s CRI focus leverages Elementum’s established counterparty relationships, as well as its expansive structuring and modelling capabilities.

The company said in a statement: “The new strategy represents an accretive blend between the concentrated nature of Elementum’s higher risk structured CRI strategy and the potential diversifying benefits provided by the firm’s more risk remote core CRI strategy, all while remaining steadfast to the core principles of Elementum’s long-established investment approach.”

Paul Barker, partner and portfolio manager at Elementum and head of the firm’s Bermuda office, noted: “This new strategy extends our existing suite of higher-yield products while enabling us to provide capital across an even wider range of the risk and return spectrum.

“As we continually strive to be a market-responsive manager, we are excited about the possibilities this strategy can offer as part of our broader value proposition within the insurance-linked securities sector.”

The company said the strategy’s launch further cements Elementum’s efforts to expand its expertise across multiple sectors of the CRI market.