Fermat Capital Management, LLC

Fermat Capital Management provides discretionary and limited non-discretionary investment management primarily to pooled funds and large institutional separately managed accounts, focusing on insurance-linked securities (ILS) and trade finance receivables. The firm serves institutional investors such as foreign pension plans, insurance companies, and funds of funds, and manages roughly $11.1 billion in regulatory assets under management as of December 31, 2025.

FCM combines quantitative and experiential analysis, subscribing to third‑party catastrophe and risk models (e.g., Verisk, RMS, KCC, CyberCube) and applying a proprietary overlay and portfolio optimization process to evaluate pricing, probability of loss, and concentration limits. The firm negotiates account‑specific terms for SMAs—taking into account liquidity, regulatory considerations, investment restrictions, lock‑ups and leverage—and may structure compensation with asset‑based and, for some ILS clients, performance‑based arrangements.

Compared with many peers, FCM has expanded into reinsurance advisory through the formation of Fermat Re (licensed as a reinsurance intermediary manager in 2025) to provide underwriting, analytics and portfolio management to insurance capital partners, and it maintains governance and personal‑investment policies around principals’ relationships with insurance sponsors. FCM also uses customized investor arrangements (side letters) and, for certain separately managed accounts, may employ borrowing and derivatives alongside its core ILS and trade finance strategies.