Ellington Financial (EFC) Investor presentation summary

Ellington management platform and expertise

• Over 170 employees and $22.2B in assets under management, with deep experience in mortgage and structured credit markets.

• Data-driven investment and risk management approach, leveraging advanced analytics and technology.

• Senior management averages 31 years of industry experience; strong alignment with $55M ownership in EFC.

• Dedicated risk oversight group integrated with investment teams to manage downside risk and deliver stable returns.

• Robust infrastructure supports rigorous management of credit, interest rate, liquidity, and other risks.

Investment strategy and portfolio construction

• Diversified mortgage REIT with a focus on credit, using an opportunistic, vertically integrated loan sourcing strategy.

• Portfolio includes non-QM, commercial mortgage, residential transition, home equity, and reverse mortgage loans.

• Flexible capital allocation to sectors with best relative value; analytical expertise aims for attractive risk-adjusted returns.

• Short-duration portfolio limits interest rate risk and generates strong cash flow with low recourse leverage (1.9x).

• Demonstrated strong credit performance with minimal realized losses across loan portfolios.

Risk management framework

• Emphasizes sector diversification, dynamic hedging, prudent leverage, and scientific cash management.

• Avoids single-asset concentration and betting on interest rate direction; maintains short maturities for credit visibility.

• Utilizes time-tested analytics, liquidity stress simulations, and robust internal controls.

• Maintains diversified financing relationships and transparent risk disclosure.

• Simulations and stress tests guide liquidity management and response to market shocks.