At FIDAC, we know every client has individual goals and risk profiles. We have developed a proprietary portfolio trading system that allows us to identify and optimize the combination of assets and leverage most likely to meet the client's desired risk-return objectives. Although every portfolio is individually tailored to meet our clients' objectives, our basic strategy remains constant. We manage high quality residential US mortgage-backed securities issued by the US Government Agencies and augment their returns with the use of leverage.

Most portfolios are structured using the “FIDAC MBS Barbell Strategy”. This strategy utilizes a combination of adjustable, floating and fixed-rate mortgage backed securities so that it can perform well throughout a wide range of interest rate environments. At one end of the barbell are adjustable-rate and floating-rate securities. These securities tend to outperform when interest rates rise because their yields will increase as interest rates rise due to the adjustable nature of their coupons. On the other end of the barbell are fixed-rate securities. These securities generally experience capital gains when interest rates are falling, which help to offset the lower yields associated with falling interest rates.