Two Harbors invests primarily in residential mortgage-backed securities (RMBS). We seek to provide attractive risk‐adjusted returns over the long term, primarily through dividends and secondarily through capital appreciation.

Our relative value investment approach focuses on security selection in the residential mortgage market sectors. This means that we seek value in a variety of segments of the mortgage market, unlike other funds that focus on narrow subsets of the overall market. By taking this holistic view of the market and deploying a dynamic capital allocation approach, we maintain the flexibility and agility to find the best values in a rapidly evolving market environment.

Our target assets include Agency RMBS, whose interest and principal payments carry guarantees from federally chartered entities (Fannie Mae and Freddie Mac) or government agencies (such as Ginnie Mae); and non‐Agency RMBS, which are not issued or guaranteed by such government‐affiliated entities.