Investment Philosophy & Approach

Modelling life settlements is a very straight forward calculation.

Nearly all of the variables are known –the only unknown variable is the time to maturity.

The most successful investors in this asset class are the ones that can most accurately predict time.

Big Data and Reversion to the Mean

Most investment managers in the space purchase policies held by senior citizens and rely heavily on actuarial data of life expectancy to make investment decisions.

This business model is employed in all sorts of industries - from casinos to insurance companies to quantitative investment management. The approach profits by capturing a small statistical edge from a large pool of activity over an extended period of time.

The Moss Point Approach

While it’s a sound approach – it’s very different than the Moss Point approach. In our experience, it’s also much less profitable.

  • Key Differentiator 1: Viatical Settlements over Life Settlements

    We target very specific policies – those of people with medical conditions and a documented life expectancy of 30 months or less. To us, it’s not about a person’s age, it’s about a person’s health.

  • Key Differentiator 2: The Model

    We have invested heavily in our “MPF Maturity Model” to predict life expectancy of individual policies with greater accuracy than what can be achieved using industry-standard actuarial data

  • Key Differentiator 3: Selectivity and Intensive Diligence

    Actuarial data is very accurate, but it is also riddled with assumptions – classifying individual conditions very broadly. Moss Point never makes an investment decision before its in-house physicians have carefully evaluated the individual medical records of each policy.

  • Key Differentiator 4: Portfolio Management

    Portfolios are actively managed by proven investment professionals to optimize exposures.