UPDATE: Stifel Nicolaus Initiates Ellington Financial at Hold on Distribution Visibility

Stifel Nicolaus initiated coverage on Ellington Financial

with a Hold rating. Stifel Nicolaus commented, "We are initiating coverage of Ellington Financial (EFC) with a Hold rating on the shares. We like the dividend yield (12.4%), the mortgage credit hedge fund concept, and expect general dividend stability going forward. Still, we admit to difficulty projecting returns with any degree of confidence given the “hedge fund” nature of the business model." Ellington Financial closed at $22.66 on Wednesday.