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.
Investors benefit from our experience managing a public company. Procedures and controls reflect the policies of a public 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.
- Similar strategy utilized by financial institutions, including banks and savings & loans
- Capture 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, robust financing capabilities exist
- Modify the mix of leverage and equity funding to achieve the desired risk vs. reward profile
- 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