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Strategy The Rama Fund offers investors an attractive return on their capital while adhering to strict underwriting standards in order to ensure the preservation of that capital. The Fund invests primarily in first trust deeds collateralized by income producing properties, with a maximum 65% loan-to-value. In determining the value of an underlying property, the Fund Managers utilize external and internal analysis with the goal of underwriting each investment based on the liquidation value of the collateral. By requiring at least 35% of protective equity in each investment, the Fund Managers seek to minimize the number of defaults in the portfolio and to protect the capital invested in the event of default. The substantial equity cushion that buffers each of the Fund’s investments and the inherent benefits of diversification help to minimize the volatility of the Fund’s portfolio while still offering investors compelling total returns.
While the economic environment over the past several has been plagued by uncertainty and extreme volatility, we have managed to deliver consistent returns, uncorrelated to the turmoil in the capital markets. One of our competitive advantages is our ability to source proprietary deal flow from our affiliated mortgage bank, Athas Capital Group (www.athascapital.com). The Rama Fund has the right to a first look at Athas’ pipeline and can “cherry pick” the best loans from Athas. Loans that the Fund does not invest in from the Athas pipeline are subsequently brokered out. |
