MacGillivray departs Tangency to be dedicated PM of Ambassador cat bond fund

Cat bond specialist and former Nephila exec Niall MacGillivray has parted ways with insurance-linked securities (ILS) investment fund manager Tangency Capital to become the dedicated portfolio manager to the Ambassador catastrophe bond mutual fund strategy.

Tangency Capital was the sub-advisor and portfolio manager to the Embassy Asset Management run Ambassador cat bond fund strategy.

The Ambassador Fund was launched by Embassy, an investment manager with a focus on non-correlated strategies and delivering income potential, back in the third-quarter of 2021, becoming the latest in a string of US mutual investment funds with a focus on catastrophe bonds and insurance-linked securities (ILS).

It then became clear that Tangency Capital, whose main ILS strategy is focused on quota share reinsurance business, would be the portfolio manager of the Ambassador cat bond mutual investment fund.

Tangency Capital had hired former Nephila Capital catastrophe bond focused manager Niall MacGillivray, who was then named as the portfolio manager for the Ambassador Fund, under Tangency Capital which was named as the sub-advisor.

The Ambassador Fund then allocated its first capital to catastrophe bonds in the quarter to April 30th of this year, while also renewing a private ILW arrangement for 2023.

Now, Tangency Capital has stepped down as the sub-advisor of the Ambassador Fund, but MacGillivray is staying with the cat bond fund strategy.

MacGillivray is set to become an employee of Embassy Asset Management LP, which is the Ambassador Fund’s advisor, and he will continue as the cat bond portfolio manager for the fund.

Being more quota share and reinsurance focused, it’s perhaps unsurprising Tangency Capital has elected to step back from the mutual cat bond fund strategy, as its strategies have proven attractive to investors and Tangency has raised new capital over recent years.

The cat bond fund, having been small in size and slow to ramp up, may have proven a distraction for the company.

With cat bond investments proving very attractive to investors right now, MacGillivray will now have a good opportunity to develop and manage the Ambassador Fund cat bond portfolio as it scales up.

The Ambassador Fund reported that its total assets had reached just under $100 million as of the end of April 2023.