Ellington Management Group is a private firm that specializes in investment management. The company s core strategies predominantly consist of investments in mortgage-backed securities and derivatives. It also pursues arbitrage strategies for interest rates, convertible bonds and emerging markets debt. Ellington adheres to the objective of capturing a stable income stream while minimizing return volatility over time. The company utilizes proprietary systems to hedge its positions against changes in interest rates and other market events. Its hedges are designed to counteract the risk of prepayment inherent in mortgage holdings. Ellington manages funds and accounts for investors in the United States and abroad. The company was established in 1994 and is based in Old Greenwich, Conn.