LA JOLLA, CA-Altegris has launched the Altegris/AACA Real Estate Long Short Fund. The Fund seeks to deliver higher risk-adjusted returns than traditional long-only real estate strategies, while also potentially providing an inflation hedge and a durable stream of income.
The Fund's sub-adviser, American Assets Investment Management LLC utilizes a long/short real estate strategy focused on investing in equity securities of real estate investment trusts and real estate companies in sectors where tenants are not inclined to move. These situations manifest themselves when sectors have few participants, tenants have high demand drivers for their businesses, high entry barriers exist for new owners and developers and tenants have high barriers to exit, says the firm.
AACA was founded in 2002 with an established industry network of real estate professionals, investment bankers, management teams and analysts, and according to Jon Sundt, president and CEO of Altegris and the Altegris Family of Mutual Funds, "Real estate holdings are an essential component of a well-diversified portfolio designed to build and preserve capital in all market conditions."
He says that "We are giving investors an opportunity to achieve strong, inflation-hedged returns across an entire real estate market cycle."
Burland B. East III, portfolio manager and CEO of AACA, adds that "Our ability to make both long and short investments, coupled with the fact that we are not beholden to shadowing an index, gives us the freedom to create a portfolio composed of only those real estate securities we believe to have greatest total return potential. High-quality real estate run by high-quality management teams in high-quality locations may provide consistent capital over the long term, but our investment strategy seeks to mitigate the downside effects in the event of inflation."
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