MBS focuses on US mortgage-backed securities, aiming to optimize returns and manage risks by investing based on prevailing market conditions and perceived value. Specifically, it holds RMBS, CMBS, CDOs, and CMOs of any quality. This would include those rated as high yield, although capping such exposure at 30%. Additionally, it may invest in ABS, US government securities, derivatives, foreign debts, BDCs, ETFs, and corporate debts. The adviser identifies issuers with potential credit profile improvement and attractive valuations based on various factors such as collateral quality, credit support, structure, market conditions, maturity, yield, ratings, and price appreciation potential. The fund diversifies risks across position sizes, geography, ratings, duration, deal structure, ESG factors, and collateral values while targeting undervalued assets. Holdings vary in maturity, aiming for a dollar-weighted average of 2-15 years. On February 20, 2024, MBS converted into an actively managed ETF, starting with $30.6 million in net assets.