MBS Mantra

MBS Mantra(MBSM) is a Stamford-based hedge fund manager. MBSM seeks to achieve superior returns with maximal Alpha and minimal Beta by investing in income-producing MBS. Firm's key insight is that MBS are Variable Income Securities (and misclassified as Fixed Income because they are bonds). Their research and focus on understanding MBS returns has led to the conclusion that the majority of excess investment returns (Alpha) in MBS derive from realized cashflow income returns and not from a price change. MBS Mantra uses its proprietary analytical methodology, strategies, and a comprehensive understanding of MBS structures and markets, macroeconomics, money flows, and benchmarks, developed over 25+ years to construct high-income-producing portfolios with lower-than-market volatility. The firm has a steady growth process of compounding Income at high rates. MBS Mantra systematically processes securities in the marketplace to identify bonds that generate High Income. Over time, the accumulated income of the portfolios dampens volatility from price changes and also reduces duration and correlation risk. The portfolios invest in Non-Agency RMBS and MBS derivatives, with diversification through both the number of bonds owned, with multiple sub-strategies. Portfolios and strategies are customized to meet the needs of clients. The flagship unlevered MBS High Income/Absolute Return Strategy is most suited for patient capital that is seeking higher long-term income returns with lower volatility than traditional income strategies, and who seek diversification of portfolio risk through reduced Beta and correlations.