MBS: A steady climb


In the land of the mediocre, the steadily rising strategy is king. Funds dedicated to investing in (and shorting) mortgage-backed securities reported their best month of performance since February 2004, with the strategy up 1% for July and 6.02% YTD, according to research from Absolute Return. The MBS median has in fact been positive every month since July 2003, cranking out typically sub-1% gains monthly. Outperformers for the month include Ellington Overseas Partners, up 1.02%* (6.76%* YTD), and West Side Advisors, which gained 1% for the month (up 6.33% YTD). Those trailing the median, but still profitable, include