Our Strategy

Objective & Investment Strategy¹
The Fund’s investment objective is to seek income by investing primarily in performing non-agency residential whole loans secured by residential real estate. As a secondary strategy the Fund seeks to provide total return by acquiring performing residential loans at a discount to their Unpaid Principal Balances. The Fund realizes capital gains as loans are paid off before maturity. The Advisor intends to primarily allocate the Fund’s assets among debt securities that represent attractive risk-adjusted income producing investment opportunities. 
Representative Loan Profiles
Scratch and Dent 
Loans that have fallen out of a previous sale to a government agency or have been required to be repurchased. These loans become ineligible for purchase by the agency or primary investor for a wide range of reasons not limited to minor guideline misses, first-payment defaults or valuation discrepancies.
Non-Qualified Mortgage (Non-QM)
A non-QM loan is any loan product that doesn’t meet the government standards of a qualified mortgage. Non-QM loans give lenders more flexibility in underwriting guidelines to work with borrowers.
Reperforming Loans
A reperforming loan is a mortgage that became delinquent in the past but is now current on payments.  Many times, these loans have been modified from the original terms.
Short term loans include mostly bridge and rental loans. These loans are typical 1-5-year terms.

1. Closed-end funds shares may trade at a discount from their net asset value. The Fund invests substantially all its assets in groups or packages of income-producing loans secured by real estate, which are difficult to value. Up to 10% of the loans in the group or package may be delinquent or in default. The Fund will not purchase loans that currently are in foreclosure; however, loans acquired by the Fund may go into foreclosure subsequent to acquisition by the Fund. The Fund will acquire loans of borrowers with varying credit histories and may invest up to approximately 10% of its assets in loans that were classified as “sub-prime” at the time of origination.  Securities may be subject to prepayment risk because issuers are typically able to prepay principal. The Fund will not invest in real estate directly, but, because the Fund will invest the majority of its assets in securities secured by real estate, its portfolio will be significantly impacted by the performance of the real estate market and may experience more volatility and be exposed to greater risk than a more diversified portfolio. There is a risk that issuers and counterparties will not make payments on securities and other investments held by the Fund, resulting in losses to the Fund. In general, the price of a fixed income security falls when interest rates rise. A specific security can perform differently from the market as a whole for reasons related to the issuer, such as an individual’s economic situation.