Proprietary Capital LLC – About The Firm
Founded by two Wall Street professionals, Proprietary Capital LLC is headquartered in Denver, Colorado. Registered as an Investment Advisor with the Securities and Exchange Commission, Proprietary Capital is the investment manager of the Lynx Fund Master Fund. Additionally, the firm performs independent third - party pricing of a major Wall Street firm's derivative and subordinated mortgage-backed securities positions. The firm's two principals have over 45 years of collective trading and investing experience in mortgage-related securities.The firm's mission is to create fixed income oriented products that help high net-worth individuals and institutional investors improve their ability to balance their exposure to the changes in the level of U.S. interest rates. The vehicles used to accomplish this mission reside in the interest-rate sensitive and prepayment-rate sensitive sectors of the mortgage-related securities market (the derivative mortgage market).
The principals of Proprietary firmly believe that the derivative mortgage market promotes an environment that allows investors to generate an absolute positive stream of returns, each and every year. Using the firm's unique strict collateral analysis and its investment and trading experience to combine securities that maintain a negative correlation to one another, double-digit annual returns are possible over time.
Since its inception in 1997, the firm has become known for its ability to perform mortgage prepayment arbitrage. Prepayment Arbitrage is the process of uncovering unique prepayment attributes within securities that are thought to be generic in nature by the marketplace, and making decisions based on this information. The principals believe that prepayment arbitrage allow investors to realize greater cash flow yield from their portfolios, which is the driving force behind higher returns over time. Since all of the firm's products revolve around uncovering unique prepayment attributes, the firm is constantly attempting to improve its mortgage collateral evaluation tools. At the end of the day, we hope that we are known as quality mortgage security managers, or better yet, quality prepayment evaluators.
Proprietary Capital LLC Denver, Colorado (303) 575-9084