The Metacapital Mortgage Value Fund's (The Fund) net annualized return target is 8%-10% with a return volatility target of 6% or less. Portfolio leverage excluding hedges is limited to 1.5X NAV and the manager anticipates staying below this limit. The Fund will be duration neutral with short positions limited to portfolio level hedging. The Fund invests in securities in the Agency MBS, non-Agency MBS, CMBS and ABS markets to create a diversified portfolio with typical position size of 5% or less at time of investment. Investments focus on the senior classes of securitization and/or those loan pools that have lower leverage characteristics in an attempt to limit losses from unexpected performance issues. The Manager performs thorough loan level and deal structure analysis utilizing models specific to each sector and loan type. The Fund benefits from the capability, models and collective skills utilized in executing the firm's Opportunities Fund.