Providence Investment Management, LLC is an investment advisor founded in 2003 by Russell Jeffrey, which specializes in the residential mortgage-backed securities market. The PIM Funds - which include the Providence MBS Offshore Fund, Ltd., the Providence MBS Fund, LP and the Providence Yield Fund, LP - employ a relative value investment approach. The Funds invest primarily in MBS and structured MBS that are issued by either of the U.S. Government-Sponsored Entities (Fannie Mae and Freddie Mac) or Ginnie Mae.
PIM's investment process is built around diligent fundamental and technical analysis with the goal of determining which sectors of the MBS market are most attractively valued and offer superior risk-return profiles. In addition to utilizing sophisticated analytical tools including proprietary models to assess value and risk, the portfolio management team has the distinct advantage of its extensive experience navigating all types of interest rate and economic cycles. While we believe that MBS models are extremely useful tools, our ability to draw on the in-depth knowledge, perspective, and humility that two decades in the mortgage market brings is an equally critical component of the investment process. The extreme dislocations and volatility characteristic of today's mortgage market means that historical relationships are not necessarily relevant. As a result, reliance on backward-looking prepayment and valuation models has proven to be dangerous, while skillful management and rigorous underwriting has become even more important. Another distinguishing characteristic of PIM is our ability to understand the varied and oftentimes intricate structures of MBS. Detailed structural analysis allows us to identify opportunities and invest in mortgage securities that will perform well based on our current macro view of the market. At PIM, we believe in the prudent use of leverage. We strive to create a portfolio which generates attractive returns to investors without being dependent on excessive leverage. AUM reflects the aggregate of the various share classes and is denominated in USD.