Five Oaks Investment Corp. is a Maryland corporation focused on investing in, financing and managing a portfolio of residential mortgage-backed securities (“RMBS”), residential mortgage loans and other mortgage related investments.
We seek to provide attractive long-term risk-adjusted returns to our stockholders, primarily through dividends and secondarily through capital appreciation. Our hybrid model of investing primarily in both Agency and Non-Agency RMBS allows us to construct a balanced portfolio and positions us to take advantage of relative value investment opportunities across the breadth of the residential mortgage market. We believe that the residential mortgage market will undergo dramatic change in the coming years as the role of government is diminished, which we expect to generate attractive long-term investment opportunities for us. We focus on security selection, and active management of the various risks involved in our business, including credit, interest rate, prepayment, spread, liquidity and financing risk.
Our target assets include:
- Agency RMBS, which are RMBS guaranteed by a U.S. Government agency, such as the Government National Mortgage Association (“Ginnie Mae”), or a U.S. Government-sponsored entity, such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”).
- Non-Agency RMBS, which are RMBS that are not guaranteed by a U.S. Government agency or a U.S. Government-sponsored entity.
- Other mortgage-related assets, which may include mortgage loans, other mortgage-backed securities, mortgage-related derivatives and other real estate related investments.
- We have elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes, which requires that we meet a number of asset and income tests and that we distribute at least 90% of our REIT taxable income to our stockholders on an annual basis.