Active Reliable Multicast (ARM) is a novel loss recovery scheme for large-scale reliable multicast that employs active routers to protect the sender and network bandwidth from unnecessary feedback and repair traffic. Active routers perform NACKs suppression, cache multicast data for local loss recovery, and use scoped retransmission to avoid exposure. Limited active resources at routers need to be optimized to achieve low loss recovery latency and/or high network throughput. In this paper, we study the cache placement strategies and caching policies for ARM. Several heuristics, namely uniform allocation, proportional allocation, max-min fair share and weighted allocation for cache allocation methods are proposed. To further improve the loss recovery performance, caching policies can be employed in conjunction with the cache allocation strategies. Several caching policies, namely complete caching, random caching and deterministic caching, are proposed. Extensive simulation experiments are conducted to evaluate and compare the performance of the proposed strategies and policies. Numerical results reveal that significant performance gains can be achieved when a proper cache placement strategy and a caching policy are used for a given available cache resource. Another interesting finding is that the contributions of the cache placement scheme and caching policy to the recovery latency performance are roughly independent. The obtained insights in this study will provide some design guidelines for optimal active resource allocation and caching polices for reliable multicast communications.