Our Manager's investment philosophy, which developed from a singular focus in fixed-income asset management over a variety of credit cycles and conditions, is to provide clients with diversified, tightly controlled, long-term value-oriented portfolios. Through rigorous analysis of all sectors of the fixed-income market, our Manager seeks to identify assets with the greatest risk-adjusted total value potential. In making investment decisions on our behalf, our Manager will incorporate its views on the economic environment and the outlook for the mortgage markets. We expect to benefit from the breadth and depth of our Manager’s overall investment philosophy, which focuses on a macroeconomic analysis as well as an in-depth analysis of individual assets and their relative value.
We will rely on our Manager's expertise in asset allocation and identifying attractive assets within our investment strategy. Although our core investment strategy will be focused on Agency RMBS, our Manager’s expertise in related investment disciplines such as non-Agency RMBS, CMBS and ABS provides our Manager with both (1) valuable investment insights to our RMBS investment selection and strategy and (2) flexibility to invest in assets other than Agency RMBS opportunistically as market conditions warrant.
Team-Based Investment Approach
Our investment process is based on a collaborative team approach utilizing a combination of bottom-up research and top-down macroeconomic analysis. This approach begins with the development of a global investment outlook that includes forecasting economic growth, interest rates and inflation. Strategies are then driven by the difference between our interpretation of market fundamentals and what has been generally priced into securities in the market. Using a disciplined investment approach, our Manager will set targets for asset allocation and duration for each sector of the fixed-income market. This view is then carefully laid against expectations already priced into the markets in order to arrive at an investment strategy and portfolio structure.