South Street Capital Management
For the last 20 years our management model appealed to investors in search of investment stability and consistent income. We seek to provide a diversification tool which will generate a more attractive risk-adjusted rate of return than traditional fixed-income alternatives. We specialize in residential mortgages with a deep knowledge of publicly traded mortgage related companies.
Our long history has allowed us to build strong relationships with non-bank mortgage originators, major commercial banks, leading investment banks, law firms and other asset managers. Management has extensive experience in Capital Markets, Fixed Income Sales and Trading, Asset/Liability Management and Mortgage Banking. Our experience also comprises multiple housing cycles and interest rate environments.
Investors benefit from our experience managing a public company. Procedures and controls reflect the policies of a publicly traded investment company along with having an independent board of directors, preference to use nationally recognized accounting firms as auditors, and use of major commercial banks for functions such as securities custodian.
SSCM’s Strategic Partnerships provide access to:
- Wholesale funding markets
- Liability franchise that provides a consistent source of funding, especially during times of market stress
- Mortgage trading platform allows for direct access to mortgage originators, enabling SSCM to buy MBS on the ‘bid side’ of the market
Strategy Highlights
- Capture the historically positive spread relationship between the yields on short-duration Agency MBS and short-term financing rates
- Use both equity and borrowed funds to generate income from the interest on assets less borrowing and hedging cost
- Investing in highly liquid and in most cases government guaranteed assets
- Continuous adjustment of risk vs reward profile by modifying the portfolio leverage based on macroeconomic conditions.
Manager Objectives
- Achieve durable risk adjusted returns over various interest rate, housing and economic cycles
- Identify and capitalize on relative value of discrepancies in the RMBS markets
- Actively manage cash flows to provide for opportunistic investing and regular distributions to our Clients
- Maximize tax efficiency
- Minimize credit risk
- Mitigate the impact that changing interest rates have on the portfolio by utilizing dynamic hedging strategies
- Offer uncorrelated returns vs. other asset classes
Meet the Team
“Management has extensive experience in Capital Markets, Fixed Income Sales and Trading, Asset/Liability Management and Mortgage Banking. Our experience also comprises multiple housing cycles and interest rate environments.”


