The Longwood fund, a Toronto-based long/short vehicle focused on publicly traded real estate securities, returned 0.46% in July, bringing its year-to-date net return to 5.18%.
Portfolio manager Andrew Moffs told investors in his July commentary that the “general theme” of the month has been one of “policy trumping data as markets continue to shrug off continued weak economic data in favor of accelerated policy responses globally.”
The fund is run by SRE Securities, the Canadian arm of Greenwich, Conn.-based Starwood Real Estate Securities. Longwood is the firm’s first Canadian vehicle, launched in 2010 with local seed capital.
The fund’s net exposure averaged 27% in July. Moffs, who also serves as president of SRE Securities, said the fund entered August “with a slightly higher gross exposure of 89% but with a lower net exposure of 26% (compared with exposures of 84% gross and 29% net on July 1st). This reflects some harvesting of gains and additions to the short book.”
The Longwood fund is currently short U.S. office and industrial companies overall and long malls and manufactured housing. North of border, the firm continues “to expect a pullback in the Canadian REIT market and a correction in the single-family housing market” and has “positioned accordingly,” according to Moffs’ commentary.
The Longwood fund has roughly 50% exposure to Canadian securities, 45% exposure to U.S. securities and 5% exposure to international securities.