The Hyperion Brookfield ABS Investment Strategy provides excess returns through the identification of relative value opportunities in the asset-backed securities market. The strategy is invested in those securities represented in the Lehman ABS Index, as well as certain non-index ABS issues.

Our investment approach begins with the identification of fundamental and technical factors in each asset class or sub-sector. After identifying areas with strong relative value, we analyze the sub-sectors at the counterparty and security levels. We believe that we can consistently find attractive value in specific securities after first identifying particular sectors, structures, originators, collateral, and servicers that are likely to outperform. Even in our favored sectors, we believe that not all issues will perform equally well. Furthermore, among distressed sectors and issuers, it is possible to identify securities that have attractive upside to downside performance potential.

Hyperion Brookfield is continually involved in the new-issue and secondary ABS markets. We maintain databases of all primary issuance and related pricing; we constantly assess the characteristics of new issuance and recent loan originations. Hyperion Brookfield's extensive market knowledge provides a solid foundation for comparing issuers and vintages. Our market expertise also serves to establish a basis for understanding changing prepayment scenarios and loss curve assumptions given current originations, loan rates and credit trends. Further, our well developed surveillance process is a key to both tracking our holdings versus expectations, and to providing key inputs to our asset selection process.