Investment Approach
How We Invest
MCC’s investment process combines two layers of analysis on every position.
Macro-economic analysis
We form views on long or short risk and duration by anticipating macroeconomic, regulatory, and legal developments, and adjust holdings as those views evolve.
Micro-credit analysis
Proprietary models built over two decades apply loan-level mortgage information and real estate market data, together with cash flow projections, to assess the upside and risk of each position — including expected average life, duration, yield, and write-down projections on structured securities.
Where We Play
MCC operates across the spectrum between illiquid private real estate markets and efficient public real estate securities markets, positioning around dislocated mortgage securities where the firm’s combined real estate and structured-credit expertise creates an edge.
The firm’s process tracks the full loan lifecycle — origination, mortgage bond issuance, mortgage bond trading, distressed loan workouts, and loan and property liquidation — to identify opportunities as they move from origination through resolution.
Investment Philosophy
Source investments within inefficient markets, focusing on situations where sellers face non-economic pressure — forced selling from downgrades, redemptions, or mark-to-market losses.
Pursue opportunities where real estate and structured-products expertise intersect, where complexity and distress limit traditional competition.
Invest with a margin of safety, favoring positions with cushioned downside and identifiable catalysts.
Target attractive risk-adjusted returns through a comprehensive underwriting process built on a proprietary loan research database and market relationships.
Risk
Investing in the strategies described above involves substantial risk, including credit risk, real estate market risk, leverage, valuation risk, and liquidity risk. Past performance is not indicative of future results, and clients must be prepared to bear the loss of their entire investment.
A complete description of risk factors is set out in MCC’s Form ADV Part 2A, available on the SEC’s Investment Adviser Public Disclosure website at adviserinfo.sec.gov.
