Risks to Investors
Risk Factors Affecting CATCo Reinsurance Opportunities Fund Ltd.

Investment in the Company involves a significant degree of risk. Risk factors affecting the Company, but are not limited to, the following:

  • The value of an investment in the Company is subject to normal market fluctuations and other risks inherent in investing in securities.
  • There is no assurance that any appreciation in the value of Shares will occur or that the investment objectives of the Company will be achieved. The value of investments and the income derived therefrom may fall as well as rise and investors may not recoup the amount originally invested in the Company.
  • The performance of the Company and the Master Fund’s portfolio depends heavily on the financial and managerial experience of the management team (particularly Tony Belisle) associated with the Investment Manager.
  • The Master Fund has substantial exposure to losses resulting from natural and man-made disasters and other catastrophic events. The incidence and severity of such catastrophes are inherently unpredictable, and the Master Fund’s losses from such catastrophes could be material.
  • The Company’s performance is dependent upon the performance of the Master Fund and, except in limited circumstances, the Company will not have any control over the Master Fund’s investments.
  • There is no secondary market for Master Fund Shares, and the Company may only redeem its Master Fund Shares on an annual basis, subject to certain restrictions. Distributions to Shareholders, tender offers, buy-backs and certain other corporate actions are dependent on the Company being able to realise some or all of its investment in the Master Fund. As such, any delay in realising the Company’s investment in the Master Fund may have an adverse impact on the Company’s ability to make targeted distributions and implement intended corporate actions.


For further risk factors, details can be downloaded here