Hedge fund AQR Capital Management has formed a new reinsurance group.

The group said it is looking to develop investment strategies that have low correlation with traditional markets and hedge funds.

The reinsurance strategy has a $250m funding goal and will be capitalised by AQR and outside investors.

It will offer exposures to risks in 50 different territory and peril exposures with minimal correlations between them.

Andrew Sterge has been recruited to lead the new group and is formerly head of both Pulsar Re and Cooper Neff group.

Sterge will be joined by two London-based reinsurance underwriters Rick Mongomerie and Charlie Vaughn.