- We trade our mortgage REIT positions based on shifting price-to-book ratios.
- It’s a great technique. It’s like counting cards, except we get to use machines, and some people think they sat down to play "Go Fish."
- We will share one of our recent adjustments in our portfolio.
- CMO was our largest mortgage REIT position. As we stated previously, we would monitor the price-to-book ratio to determine when to take gains.
- We raised positions in NRZ and NLY to capture a shift in valuations. These trades go through tax-advantaged accounts to avoid short-term capital gains taxes.
For further details see:
Changing Our Largest Mortgage REIT Position