Hedge Funds

West End and Montpelier Re combine talents

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Bermuda-based fixed-income firm West End Capital Management has joined with its island neighbor, Montpelier Re Holdings, to launch Rockridge Reinsurance.

Operating as a hybrid hedge fund and reinsurance company, Rockridge will invest in government bonds and in high-level short-term risks, such as those related to natural disasters.

West End, headed by Mark Byrne and backed by legendary investor Warren Buffett, will run Rockridge's fixed-income investments, which are expected to account for as much as 75% of the fund's assets under management.

These investments will run as a near-copycat of West End's government bond arbitrage strategy fund and bet