All of the loans in our portfolio are in a 1st lien position and our weighted average LTV (loan-to-value) is 42.3%. That means our portfolio has greater than 100% equity coverage which equates to a very high return relative to the risk.
Agoura Hills, CA (Vocus) March 10, 2010
Alim Kassam, CEO of Rama Capital Partners, LLC spends an inordinate amount of his waking hours with a phone firmly attached to his ear. That’s to be expected, of course, when the mortgage fund you run just announced a net return of 10.57% for 2009 and a total net return since its inception in October 2008 of 15.07%. This kind of performance is good in the very best of times, but in an environment where investing in commercial and residential property has all the appeal of ants at a picnic, returns like this make you a very popular person, indeed. Investment professionals meeting with Mr. Kassam and the President of Rama Capital, Brian O’Shaughnessy, for the first time come away trying to figure out how to place more of their portfolio’s assets with the fund.
“Investors love the fact that we offer monthly cash distributions and that our returns are fully audited, so much so that we have actually had to discourage some of them from increasing their allocation to us. While we believe our investment platform offers unparalleled risk/reward, we have to be prudent when advising our investors and encourage them to maintain a fully diversified investment portfolio,” said Kassam.
As a fund that invests in short-term 1st trust deeds, there are certain parameters the professional investor looks for when making an investment decision. One of the key factors making The Rama Fund stand out from other alternative investment funds is the substantial equity cushion buffering the portfolio. Kassam explains, “All of the loans in our portfolio are in a 1st lien position and our weighted average LTV (loan-to-value) is 42.3%. That means our portfolio has greater than 100% equity coverage which equates to a very high return relative to the risk.” This also leads to questions about what type of properties make up the fund “The vast majority of collateral supporting our loans are income producing properties with an overweighted bias towards multi-family assets,” said O’Shaughnessy.
ERISA eligible assets (retirement savings, e.g. IRA’s, 401K’s, etc.) also like to invest in funds. “When you deal with high net-worth individuals taxation is always a consideration. Capacity within The Rama Fund for ERISA accounts is in very high demand because of the limitations associated with tax-deferred accounts,” explains Mr. Kassam.
The Rama Fund offers the benefits of trust deed investing without the barriers to entry traditionally inherent in this asset class, including real estate experience and personal time commitment. Our Fund combines low volatility, preservation of capital, investment transparency, and diversification, while offering attractive returns traditionally associated with higher risk investments.
This release is for information regarding the company only and is not an offer, or a solicitation of an offer, to buy or sell securities mentioned herein.
For all media outlets -- To schedule an interview with a company representative, please contact Scott Chaney via email at schaney(at)athascapital(dot)com or call 877.877.1477 x208.