Phillip J. Kardis II Appointed Chief Executive
Officer and Director
Choudhary A. Yarlagadda, President, Chief
Operating Officer and Director, and Dan Thakkar, Chief Risk
Officer, Appointed Co-Chief Investment Officers
CEO, CIO and Director Mohit Marria to Step Down
from Company, Effective Immediately
Chimera Investment Corporation (“Chimera” or the “Company”)
(NYSE:CIM) today announced leadership changes intended to
strengthen the Company’s performance, and position the Company to
navigate changing market dynamics.
- Phillip J. Kardis II, has been appointed Chief Executive
Officer, effective immediately. Mr. Kardis will also become a
member of the Board of Directors as a Class III director and will
stand for election to the Board at the Company’s 2023 Annual
Meeting of Shareholders. Mr. Kardis has been actively involved in
leadership of the Company, its operations, and its strategic
initiatives since its founding in 2007, and has played a key role
in structuring the Company’s securitization, financing and
investment transactions. Mr. Kardis has been immersed in all
aspects of the Company’s strategic planning, policies and
transactions, including serving on the Valuation Committee and
Investment Committee. Mr. Kardis has recognized expertise in
mortgage REITs and structured transactions. He first served as the
Company’s IPO and primary outside corporate and transactional
counsel, and since 2015 as its Chief Legal Officer and Secretary.
In addition to 26 years as an attorney, he has held senior
positions in both the Legislative and Executive Branches of the
Federal Government as well as in public and private corporations.
Mr. Kardis succeeds Chief Executive Officer, Chief Investment
Officer and Director Mohit Marria, who has stepped down from the
Company and the Board, effective immediately.
- Choudhary A. Yarlagadda, President, Chief Operating Officer and
member of the Chimera Board of Directors, has been appointed
Co-Chief Investment Officer, effective immediately. Mr. Yarlagadda
has played a critical role in all aspects of the Company’s
investment strategy and execution and was a member of Chimera’s
investment team at its founding. As President and Chief Operating
Officer, he has been closely involved in the selection and
structuring of the Company’s investments. Prior to joining Chimera
as Chief Operating Officer in August 2015, when the Company
internalized its management, and becoming its President in 2021,
Mr. Yarlagadda was a Managing Director and Head of Structured
Products for Annaly Capital Management since January 2008, where he
was involved in the investment activities of Chimera. Earlier in
his career, Mr. Yarlagadda served as a Director in Structured
Credit Products at Credit Suisse and as a Vice President in the
Fixed Income Mortgage Group at Nomura Securities International,
Inc.
- Dan Thakkar, has been appointed Co-Chief Investment Officer,
effective immediately. Mr. Thakkar joined Chimera as Chief Risk
Officer in December 2020 from Genworth Financial, where he led the
Fixed Income Trading Desk. Previously, Mr. Thakkar headed Trading
for Genworth’s Structured Portfolio from 2008 to 2012, which
included RMBS, CMBS and ABS. Mr. Thakkar also held roles of
increasing responsibility at Hyperion Brookfield Asset Management
from 2005 to 2008, one of the original asset managers of
residential mortgage-backed security funds, where he traded RMBS
and managed a Mortgage REIT fund.
As CEO, Mr. Kardis will focus on all aspects of business
oversight, operations, strategic planning, policies and
transactions and will work closely and collaboratively with Mr.
Yarlagadda and Mr. Thakkar as they focus on setting and
implementing the Company’s investment strategy.
Gerry Creagh, Chairman of the Chimera Board of Directors, said
“With rapidly changing market dynamics and a vastly different
environment than even twelve months ago, our Board is taking
decisive and necessary action to strengthen business performance
and drive improved results for our shareholders. With the
separation of the CEO and CIO roles, we are returning to a
leadership structure and division of responsibilities that served
Chimera well for many years and is ideally suited for this
environment. Phil is a well-respected and seasoned leader with both
deep technical and domain expertise as well as strategic vision,
and he is uniquely qualified to take on the role of CEO. In
Choudhary and Dan, we have two executives who provide continuity
and institutional knowledge of our firm, together with decades of
industry and investment experience. The Board and I are confident
that Chimera has the right leadership team to effectively navigate
the current market environment and chart a path forward that should
position Chimera to deliver consistent and sustainable results for
shareholders well into the future.”
Mr. Creagh added, “Mohit has been with the Company since its
founding and has played a key role in developing the Company’s
franchise value as a leader in securitizing residential mortgage
loans. The Board is grateful to Mohit for his contributions and
wishes him well in his next chapter.”
Mr. Kardis commented, “I am honored to take on this role at such
an important time for our company. We are proud to have delivered
approximately $5.8 billion in dividends since our inception. At the
same time, we recognize that there is work to be done to better
position Chimera for the future. To that end, I am thrilled to have
such talented investment professionals in Choudhary and Dan as part
of the senior leadership team, providing continuity with respect to
investment decision making. I look forward to collaborating with my
colleagues and leaning on their respective expertise as we
challenge ourselves to think creatively and execute on the
potential ways in which we capitalize on our unique market position
and strengths to deliver the capital returns that our valued
shareholders expect.”
As previously announced on November 3, 2022, and on November 17,
2022, the Chimera Board of Directors declared fourth quarter of
fiscal year 2022 preferred stock and common stock dividends,
respectively. To view these releases, visit the Investor Relations
section of Chimera’s website at www.chimerareit.com.
About Phillip J. Kardis II
Phillip J. Kardis II now serves as Chimera’s Chief Executive
Officer and as a member of the Board of Directors. He previously
served as the Company’s Chief Legal Officer and Secretary since
2015. Mr. Kardis has been actively involved in leadership of
Chimera, its operations, and its strategic initiatives since its
founding in 2007, and has played a key role in structuring
Chimera’s securitization, financing and investment transactions.
Mr. Kardis has been immersed in all aspects of the Company’s
strategic planning, policies and transactions, including serving on
the Valuation Committee and Investment Committee. Mr. Kardis has
recognized expertise in mortgage REITs and structured transactions.
He first served as the Company’s IPO and primary outside corporate
and transactional counsel, and since 2015 as its Chief Legal
Officer and Secretary.
Prior to joining Chimera as Chief Legal Officer in September
2015, Mr. Kardis was a partner with the law firm of K&L Gates
LLP where he represented mortgage REITs and other companies and
funds that acquire, originate, service and finance residential
mortgage loans, mortgage servicing rights and mortgage-backed
securities. Prior to joining K&L Gates LLP in 2004, Mr. Kardis
practiced corporate and securities law at several law firms. In
addition, Mr. Kardis has held positions at the U.S. Department of
Commerce, Rockwell International, the U.S. Senate Committee on the
Budget and Analytic Services, Inc. Mr. Kardis has two BA degrees
from George Washington University, an MA from George Washington
University, an MA from George Mason University, and a JD from the
Georgetown University Law Center.
About Choudhary Yarlagadda
Choudhary Yarlagadda now serves as Chimera’s President, Chief
Operating Officer and Co-Chief Investment Officer. He has also been
a member of the Company’s Board of Directors since 2020. Mr.
Yarlagadda has played a critical role in all aspects of the
Company’s investment strategy and execution and was a member of
Chimera’s investment team at its founding. As President and Chief
Operating Officer, he has been closely involved in the selection
and structuring of the Company’s investments. Prior to joining
Chimera as Chief Operating Officer in August 2015, when the Company
internalized its management, and becoming its President in 2021,
Mr. Yarlagadda was a Managing Director and Head of Structured
Products for Annaly Capital Management since January 2008, where he
was involved in the investment activities of Chimera. Prior to
joining Annaly, Mr. Yarlagadda was a Director in Structured Credit
Products at Credit Suisse and before that a Vice President in the
Fixed Income Mortgage Group at Nomura Securities International,
Inc. Mr. Yarlagadda has an MS from the Florida Institute of
Technology and BS from the National Institute of Technology
(India).
About Dan Thakkar
Dan Thakkar now serves as Chimera’s Co-Chief Investment Officer.
Prior to joining Chimera as Chief Risk Officer in December 2020,
Mr. Thakkar headed the Fixed Income Trading Desk at Genworth
Financial from 2012 to 2020, where he was responsible for
overseeing Trading for IG Corporates, High-Yield, Municipals,
Emerging Markets and Structured Product Sectors including RMBS,
ABS, CMBS and CLOs. Prior to this job, Mr. Thakkar headed Trading
for Genworth’s Structured Portfolio from 2008 to 2012 that included
RMBS, CMBS and ABS. Prior to Genworth, Mr. Thakkar was with
Hyperion Brookfield Asset Management for from 2005 to 2008, one of
the original asset managers of residential mortgage-backed security
funds, where he traded RMBS and managed a Mortgage REIT fund. Mr.
Thakkar also spent nine years at MetLife, where he was an Agency
and Non-Agency RMBS trader. Prior to that job, he traded Government
and Agency Debt, and had stints at Portfolio and Risk Management
units within MetLife. Mr. Thakkar has his BA in Accounting from the
University of Delhi and MBA from University of Hartford. Mr.
Thakkar received his CFA charter in 2001. Mr. Thakkar also
completed the Global Leadership Program from the Tuck School of
Business at Dartmouth in 2019.
About Chimera
Founded in 2007 and headquartered in New York City, Chimera
Investment Corporation (NYSE: CIM) is an internally managed Real
Estate Investment Trust (REIT). Our principal business objective is
seeking to provide an opportunity for stockholders to realize
attractive risk-adjusted returns through the generation of
distributable income and through asset performance linked to
residential mortgage credit fundamentals. To learn more about
Chimera, visit www.chimerareit.com.
Disclaimer
This press release includes “forward-looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. Actual results
may differ from expectations, estimates and projections and,
consequently, readers should not rely on these forward-looking
statements as predictions of future events. Words such as “expect,”
“target,” “assume,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believe,” “predicts,” “potential,” “continue,” and similar
expressions are intended to identify such forward-looking
statements. These forward-looking statements involve significant
risks and uncertainties that could cause actual results to differ
materially from expected results, including, among other things,
those described in our most recent Annual Report on Form 10-K, and
any subsequent Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K, under the caption “Risk Factors.” Factors that could
cause actual results to differ include, but are not limited to: our
business and investment strategy; our ability to accurately
forecast the payment of future dividends on our common and
preferred stock, and the amount of such dividends; our ability to
determine accurately the fair market value of our assets;
availability of investment opportunities in real estate-related and
other securities, including our valuation of potential
opportunities that may arise as a result of current and future
market dislocations; effect of the novel coronavirus (or COVID-19)
pandemic on real estate market, financial markets and our Company,
including the impact on the value, availability, financing and
liquidity of mortgage assets; how COVID-19 may affect us, our
operations and our personnel; our expected investments; changes in
the value of our investments, including negative changes resulting
in margin calls related to the financing of our assets; changes in
interest rates and mortgage prepayment rates; prepayments of the
mortgage and other loans underlying our mortgage-backed securities,
or RMBS, or other asset-backed securities, or ABS; rates of
default, delinquencies or decreased recovery rates on our
investments; general volatility of the securities markets in which
we invest; our ability to maintain existing financing arrangements
and our ability to obtain future financing arrangements; our
ability to affect our strategy to securitize residential mortgage
loans; interest rate mismatches between our investments and our
borrowings used to finance such purchases; effects of interest rate
caps on our adjustable-rate investments; the degree to which our
hedging strategies may or may not protect us from interest rate
volatility; the impact of and changes to various government
programs, including in response to COVID-19; impact of and changes
in governmental regulations, tax law and rates, accounting
guidance, and similar matters; market trends in our industry,
interest rates, the debt securities markets or the general economy;
estimates relating to our ability to make distributions to our
stockholders in the future; our understanding of our competition;
availability of qualified personnel; our ability to maintain our
classification as a real estate investment trust, or, REIT, for
U.S. federal income tax purposes; our ability to maintain our
exemption from registration under the Investment Company Act of
1940, as amended, or 1940 Act; our expectations regarding
materiality or significance; and the effectiveness of our
disclosure controls and procedures.
Readers are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made.
Chimera does not undertake or accept any obligation to release
publicly any updates or revisions to any forward-looking statement
to reflect any change in its expectations or any change in events,
conditions or circumstances on which any such statement is based.
Additional information concerning these, and other risk factors is
contained in Chimera’s most recent filings with the Securities and
Exchange Commission (SEC). All subsequent written and oral
forward-looking statements concerning Chimera or matters
attributable to Chimera or any person acting on its behalf are
expressly qualified in their entirety by the cautionary statements
above.
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Investor Relations 888-895-6557 www.chimerareit.com
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