Key Takeaways
- • Stone Ridge Asset Management is adding bitcoin as an investment strategy in its Stone Ridge Diversified Alternatives Fund (SRDAX), with the change set to take effect April 26, according to the publisher summary.
- • The fund's prospectus, filed with the SEC on February 24, 2021 as Post-Effective Amendment No. 71 to Stone Ridge Trust's Form N-1A, describes the bitcoin exposure as being gained through the sale of at-the-money or out-of-the-money exchange-traded, cash-settled put options on bitcoin futures.
- • The fund's stated objective is total return, drawing on multiple alternative strategies that the adviser believes can generate attractive, diversifying returns relative to traditional stock and bond portfolios.
- • The fund's prospectus lists a management fee of 0.56% and total annual operating expenses of 2.07% (Class I) and 2.36% (Class J) after fee waivers, with the adviser contractually capping expenses at 0.40% through April 26, 2022.
Summary
Stone Ridge Asset Management is adding bitcoin as an investment strategy in its Stone Ridge Diversified Alternatives Fund, according to the publisher's coverage, with the change scheduled to take effect on April 26. The Stone Ridge Trust registration statement, filed with the Securities and Exchange Commission on February 24, 2021 as Post-Effective Amendment No. 71 on Form N-1A, supplies the operational detail. The fund intends to gain exposure to bitcoin's price by selling at-the-money or out-of-the-money exchange-traded, cash-settled put options on bitcoin, and related coverage describes the exposure as running through put options on bitcoin futures contracts.
The Stone Ridge Diversified Alternatives Fund, which trades under ticker SRDAX for Class I shares and SRDBX for Class J shares, is positioned as a long-term vehicle for investors seeking diversifying alternative sources of return. Its investment objective is total return. Publisher materials describe it as an actively managed alternative multistrategy fund launched in 2020 and designed to give investors access to several underlying strategies. Those strategies include reinsurance, market risk transfer, style premium investing, alternative lending, single-family real estate and, with the planned addition, bitcoin.
The prospectus fee table shows a management fee of 0.56% for both share classes. The fee is bifurcated: 0.00% on assets invested in funds advised by Stone Ridge, and 1.50% on other investments. Other expenses are 3.30% for Class I and 3.59% for Class J, and acquired fund fees and expenses are 1.08%. Total annual operating expenses are 4.94% for Class I and 5.23% for Class J before waivers. After a contractual fee waiver and expense reimbursement of 2.87%, net expenses are 2.07% for Class I and 2.36% for Class J. The adviser has agreed to limit total annual fund operating expenses, excluding certain excluded expenses, to 0.40% of average daily net assets through April 26, 2022, subject to recoupment within three years.
The filing was prepared by Ropes & Gray LLP and lists Stone Ridge Asset Management's offices at 510 Madison Avenue in New York. The source material available for this summary is limited to the registration statement and headline-level coverage, so specific allocation sizes, fund AUM and the portfolio managers' rationale for the bitcoin sleeve are not disclosed in the materials reviewed.
The Stone Ridge Diversified Alternatives Fund, which trades under ticker SRDAX for Class I shares and SRDBX for Class J shares, is positioned as a long-term vehicle for investors seeking diversifying alternative sources of return. Its investment objective is total return. Publisher materials describe it as an actively managed alternative multistrategy fund launched in 2020 and designed to give investors access to several underlying strategies. Those strategies include reinsurance, market risk transfer, style premium investing, alternative lending, single-family real estate and, with the planned addition, bitcoin.
The prospectus fee table shows a management fee of 0.56% for both share classes. The fee is bifurcated: 0.00% on assets invested in funds advised by Stone Ridge, and 1.50% on other investments. Other expenses are 3.30% for Class I and 3.59% for Class J, and acquired fund fees and expenses are 1.08%. Total annual operating expenses are 4.94% for Class I and 5.23% for Class J before waivers. After a contractual fee waiver and expense reimbursement of 2.87%, net expenses are 2.07% for Class I and 2.36% for Class J. The adviser has agreed to limit total annual fund operating expenses, excluding certain excluded expenses, to 0.40% of average daily net assets through April 26, 2022, subject to recoupment within three years.
The filing was prepared by Ropes & Gray LLP and lists Stone Ridge Asset Management's offices at 510 Madison Avenue in New York. The source material available for this summary is limited to the registration statement and headline-level coverage, so specific allocation sizes, fund AUM and the portfolio managers' rationale for the bitcoin sleeve are not disclosed in the materials reviewed.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.