Earnings & Results Updates
Greenlight Reinsurance, Ltd. and Greenlight Reinsurance Ireland, DAC (collectively, the “Companies”) each are limited partners in Solasglas Investments, LP (“Solasglas”).[i] DME Advisors, LP (“DME Advisors”) acts as the investment advisor to Solasglas. Investment returns (net of fees and expenses) for the Companies’ Investment Portfolio,[ii] which are calculated monthly and compounded year-to-date and annually, are set forth in the chart below.
For the month of August 2021, Solasglas reported an investment gain of 1.2%, which represents an estimated investment gain (net of fees and expenses) to the Companies of $2,700,000.
As at August 31, 2021, the largest disclosed long positions in Solasglas are Atlas Air Worldwide, Brighthouse Financial, Chemours, Green Brick Partners and Teck Resources.
As at August 31, 2021, Solasglas is approximately 85% long and 36% short.[iv]
*Effective January 1, 2021, the basis on which the Investment Portfolio is calculated was revised. Please see footnote ii, below
Past performance is not necessarily indicative of future results.
[i]The Companies are required to fund accounts that provide collateral to support trust accounts and letters of credit for their underwriting operations. These funds are typically invested in cash, cash equivalents, and fixed income securities and are held outside of Solasglas.
[ii]In accordance with the Solasglas limited partnership agreement (the “LPA”), DME Advisors constructs an investment portfolio as agreed with each of the Companies (collectively, the “Investment Portfolio”). Effective January 1, 2021, the Investment Portfolio is calculated on the basis of 50% of GLRE Surplus, or the shareholders’ equity of Greenlight Capital Re, Ltd., as reported in Greenlight Capital Re, Ltd.’s then most recent quarterly U.S. GAAP financial statements, adjusted monthly for the Companies’ net profits and net losses as reported by Solasglas during any intervening period. Prior to January 1, 2021, the Investment Portfolio was calculated on the basis of several factors, including the Companies’ shares of Solasglas’s net asset value, collateral posted by the Companies, and the Companies’ net reserves.
The monthly investment return is calculated by dividing the investment income/loss (net of fees and expenses) by the Investment Portfolio.
[iii]DME Advisors may elect not to disclose certain positions to investors in affiliated funds in order to maintain confidentiality regarding its investment decisions. Accordingly, on our website, we present the relevant largest long positions as disclosed by DME Advisors or its affiliates to investors in its affiliated funds.
[iv]All exposure information is calculated on a delta adjusted basis and excludes credit default swaps, interest rate swaps, sovereign debt, currencies, commodities, volatility indexes and derivatives on any of these instruments. The exposure calculations are based on the month-end exposures of the Investment Portfolio. The foregoing investment results are interim and unaudited, and are provided for informational purposes only and are not intended to be used for investment purposes. Neither we nor our data or content providers guarantee the accuracy or completeness of any financial results or other data displayed, nor shall any such party be liable in any way to the reader or any other person, firm or corporation whatsoever for any delays, inaccuracies, errors in, or omission of any such information or data or the transmission thereof, or for any actions taken in reliance thereon or for any damages arising therefrom or occasioned thereby or by reason of nonperformance or interruption, or termination, of the investment results for any cause whatsoever.