Experienced and Cohesive Management Team: The extensive experience of our officers and the officers of our Manager provides us with expertise across all of our targeted asset classes. Many members of our team have worked together for over 18 years and members of our management team have experience as heads of RMBS origination and trading, whole loan MBS origination and trading, and fixed income research and quantitative systems at major financial institutions.
Sophisticated Platform and Analytical Capabilities: We benefit from Ellington Management Group’s proprietary analytical models and infrastructure, which have been developed through many years of experience and across multiple market cycles. EMG’s risk management process emphasizes the quantitative assessment and management of credit, interest rate, and prepayment risks, both on a security by security and portfolio basis. This is made possible with sophisticated quantitative tools and methodologies that are the foundation of EMG’s unique investment acquisition and portfolio construction process. Analyzing mortgage credit risk and prepayment risk in particular necessitates the development and continuous refinement of sophisticated statistics-based computer models. We believe that this expertise and infrastructure, together with EMG’s experience investing and leveraging large pools of capital in complex mortgage and derivative instruments through various economic and business cycles, are critical for us to meet our objectives.
Flexible Structure and Portfolio Construction: Ellington Financial benefits from a publicly traded partnership structure. The flexibility that this structure provides is critical to quality portfolio construction and effective risk management. Our Manager has the ability to capture upside potential while protecting against downside risk in the portfolio by selectively choosing assets, without the burden restrictive income or asset tests. The flexibility of our structure allows for fundamentally superior portfolio management and helps us to generate attractive returns for our shareholders.