Smith Graham Expands Into Alternative High Quality Fixed Income Offerings

Smith Graham (SG), the $6 billion institutional fixed income firm founded in 1990 by a team hailing from diverse backgrounds adds alternative assets with the successful acquisition of Five Mile Capital Partners' Residential Whole Loan mortgage team.

Smith Graham Expands Into Alternative High Quality Fixed Income Offerings

March 7, 2017

Houston/New York - Smith Graham (SG), the $6 billion institutional fixed income firm founded in 1990 by a team hailing from diverse backgrounds adds alternative assets with the successful acquisition of Five Mile Capital Partners' Residential Whole Loan mortgage team led by Brian Tortorella, Managing Director.

"With a 27-year heritage, and a 14-year average client tenure, we continue to enhance our core offerings in response to investors seeking greater diversification and higher yields. We are taking our conservative and repeatable investment process to different asset classes, including alternative income sources. Our goal is to deliver solutions that meet the rational needs and expectations of clients, which was the impetus for onboarding Brian & team," said Gerald Smith, Chairman and CEO.

"Adding alternative fixed income solutions which have a low correlation to our existing fixed income products will allow us to offer higher yielding, low beta investment opportunities to our clients and prospects. Although traditional asset management will continue to be the core of our firm, it was important to reposition Smith Graham to take advantage of the tremendous growth opportunities available from the alternatives asset class," said Donna Sims Wilson, President.

The Five Mile team joins the firm bringing an exemplary 9 year track record across two strategies which includes re-performing mortgage loans as well as bridge loans. The products are designed to produce current income to insulate downside risk, focus on short duration assets to limit interest rate risk and volatility, and concentrate on assets that require operational expertise, have limited competition and accretive optionality. Brian Tortorella leads the residential team and is a 20-year industry veteran with experience at Goldman Sachs and UBS.

"I am delighted to be a part of Smith Graham's renowned team, known for its distribution, operations and proprietary risk management systems," said Brian Tortorella. Together, we will build a best in class platform that provides sensible investment solutions to our LPs through economic cycles."

This acquisition represents Smith Graham's second lift-out. In 2009, Smith Graham purchased the fixed income and small and mid cap value equity assets from Ark Asset Management. With the prospect of rising interest rates, Smith Graham now provides products from various cash strategies to alternatives to respond to all market environments. This enables Smith Graham to match investors with products that have the most appropriate risk-return profiles.

SG's new website (www.smithgraham.com) includes updated firm messaging that promotes better investor decision-making, new thought leadership, research and news showcasing fixed income, securitized products, credit and value equity products, as well as alternative income solutions.

Smith Graham ("SG") is a $6bn institutional equity and fixed income management firm headquartered in Houston and New York. Founded in 1990 with a team hailing from diverse backgrounds, SG applies its conservative and repeatable investment process to different asset classes, including alternative income sources. As it completes its third decade of asset management, SG continues to embrace new opportunities that meet conservative risk requirements for delivering consistent and dependable returns for long-term partners.


About Smith, Graham & Co. Investment Advisors

Smith Graham is a $6 billion institutional equity and fixed income management firm headquartered in Houston and New York. Founded in 1990 with a team hailing from diverse backgrounds, Smith Graham applies its conservative and repeatable investment process to different asset classes, including alternative income sources. As it completes its third decade of asset management, Smith Graham continues to embrace new opportunities that meet conservative risk requirements for delivering consistent and dependable returns for long-term partners.

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