The past three years have been a difficult period for Annaly Capital Management (NYSE: NLY), a real estate investment trust (REIT) that invests in mortgage-backed securities (MBS) that are backed by government-sponsored agencies such as Fannie Mae and Freddie Mac. Over the stretch, Annaly's total return, including dividends reinvested, is about a negative 20%, while its market capitalization has been slashed by nearly half. 

However, as is commonly quoted for stocks that have performed well, past performance is not necessarily indicative of future performance. The same holds true for Annaly, and the stock could outperform over the next three years.

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Source Fool.com