GS Gamma Investments are private investment funds that actively invest in AAA agency and prime mortgage-backed securities and that seek steady returns with relatively low correlation to major market indices, as well as to other MBS funds.
The Funds employ a distinctive hybrid investment approach, consisting of three different yet complimentary strategies: Security Selection and Self-Hedging, Active Trading and Arbitrage, and Dynamic Gamma Management. The Funds are typically 90-100% invested in AAA agency backed MBS, with an occasional small allocation to prime whole loan MBS. The Funds do not invest in subprime or Alt-A securities. To date, the Funds have not used any financial leverage, nor have they entered into outside hedging markets (such as treasuries, swaps, or Eurodollars) or shorted any securities. AUM combines both the onshore and offshore funds.