Investment Philosophy

Investment Philosophy... We feel that the best way to achieve consistently superior investment results is to take advantage of pockets of inefficiency within markets. To do this, we utilize a combination of intensive credit research and quantitative analysis, along with some very pragmatic trading strategies. We have been described as "a curious blend of mad scientist and horse trader." However, we do not believe in strategies which require heroic bets on individual credits or on the direction of interest rates.

Experience... We have seen interest rates rise and fall, credit spreads widen and contract, tax laws change, and many new investment tools evolve. Through it all, we believe we have consistently produced returns superior to the broader preferred securities market. Along the way we have developed outstanding proprietary tools to help us manage, and our clients monitor, our investment portfolios.

Focus... The preferred market is a relatively small and often overlooked segment of the capital markets. It has been the focus of Flaherty & Crumrine's principals for over 30 years, enabling us to find and exploit numerous opportunities in this wonderfully inefficient market.

Independence... Flaherty & Crumrine is an independent firm, controlled by the people who run it day to day. We are not affiliated with any brokerage or other securities firm. This independence allows us the flexibility to serve our clients and keeps our focus on managing preferred portfolios.