Investment Process
We believe our research-driven team approach to stock selection offers the best opportunity to achieve superior, risk-adjusted returns over the long term.

Our Real Estate team works collaboratively to identify companies with consistent cash flow growth, the best property types, and geographic opportunities within the real estate market.

Our process ensures that all team members focus on the key drivers of stock performance – business fundamentals, valuations, and catalysts.

This dynamic team approach encourages team members to challenge assumptions with the goal of achieving superior performance. Presiding over this exchange of ideas is the portfolio manager, who ultimately makes the buy and sell decisions.

Portfolio Construction
In constructing the portfolio, the Real Estate Securities management team begins with a broader universe of stocks than many of our peers. Our universe includes equity and mortgage REITs, along with real estate operating, development, and service companies.

To this universe of real estate stock, we apply our economic research and proprietary quantitative screens to identify real estate securities with the potential to deliver growth at a reasonable price.

Further research screens identify companies within this group that have sustainable growth in cash flow and dividends based on solid business fundamentals and compelling valuations.

Along with our fundamental analysis, we perform in-depth sector and property type analysis to identify areas with the greatest potential for outperformance.

Focusing on companies within these sectors, we evaluate each management team and their ability to execute business plans, frequently making in-person visits to properties and companies.

Our team’s depth of real estate knowledge provides a competitive advantage in determining which companies should consistently outperform.

Holdings are sold if we predict a deteriorating supply vs. demand outlook or a significant change in company fundamentals. We would also sell if valuations become out of line or a catalyst failed to materialize.

Risk Management
Aside from guiding our efforts to deliver positive performance in up markets, our disciplined investment process – specifically our strict sell discipline – helps limit downside risk. We also manage risk by being diversified both geographically and across all property sectors and continuously monitoring individual issues.