AAAMCO’s investment philosophy benefits from the firm’s experience of more than 30 years advising depositories and other institutional investors in the fixed-income and lending markets. This experience has led the firm to focus on investment strategies that emphasize the short-term financing of assets as opposed to the buying and selling of assets. These strategies seek to provide superior returns to more traditional enhanced cash or short-duration investment strategies with less mark-to-market exposure. The investment process for managing financing strategies is significantly different than trading strategies; like a depository, AAAMCO focuses on “counterparty, collateral, and custodian” risks. For each investment strategy we evaluate, we research the idiosyncratic risks associated with these variables and develops risk management strategies to properly mitigate each one. If this can be done while still maintaining an attractive risk-adjusted return, we bring these opportunities to investors. Our clients include corporations, depositories, hedge funds, securities lenders, futures commission merchants and other holders of cash and cash-like instruments, and we provide consultative services to develop strategies and optimize returns within the context of their regulatory constraints and investment policy objectives.
Enhanced Cash Investment Strategy
The objective of the Enhanced Cash Investment Strategy is to outperform other cash alternatives by generating superior returns in the financing market using repurchase agreements to secure funding of a select spectrum of underlying instruments. Portfolios are built to specific investment policy constraints regarding terms, credit quality, asset types and return objectives.
The AAAMCO Ultrashort Financing Fund (ticker REPYX) commenced operations in 2017 and has gone through a variety of interest rate and economic environments. The fund focuses on repurchase agreements as the primary investment strategy. More information about the fund, including its Prospectus, Statement of Additional Information, and new account application are available on the funds’ web site, www.amffunds.com.
Private Credit Financing Strategies
AAAMCO offers investors opportunities to deploy assets in underserved markets and industries that exhibit highly developed documentation protocols and collateral security. The firm offers separately managed accounts in the financing of delinquent U.S. government-guaranteed mortgage loans (“EBO Financing”), mortgage warehouse loans, and international trade finance receivables. AAAMCO has also developed a financing strategy using bitcoin and other cryptocurrencies as collateral.
Treasury Consulting Services
The firm’s multi-faceted process includes:
- Identifying gaps in the front, middle, and back-office processes that may result in the misallocation of assets to the detriment of returns.
- Developing optimization strategies based on quantitative analysis of historical liquidity demands within the context of investment policy parameters.
- Sourcing diversified investment counterparties and eligible instruments/collateral.
- Providing fee-based resources to actively manage short-term investments.
AMF LARGE CAP EQUITY FUND
AAAMCO is the advisor to the AMF Large Cap Equity fund, one of the oldest open-end mutual funds in the U.S. The funds invest primarily in large-cap equities.