KeyPoint Real Estate Fund Up 3% In Sept.

Oct 12 2012 | 8:14am ET

The Dallas-based KeyPoint Real Estate Opportunity Hedge Fund was up approximately 3.0%, after fees, in September which puts the fund up about 12.5% year to date.

Founded by Bear Stearns and Goldman Sachs vet Rod Hinze in 2009, the $70 million fund specializes in very liquid long/short investments in real estate-related U.S. equity securities.

KeyPoint attributed its September gains to short positions in REITS.  According to the manager's September commentary:

“Short positions in REITs during the month continued to generate alpha and absolute returns in a rising market. The fund remains significantly net short REITs going into October 2012 but anticipates covering many positions that have hit our price target. We are currently watching a number of identified real estate finance names that we think are trading above fair value.

"In the long book, we recently sold GEO, the best performing position in the fund during the year, as it was near our price target and the risk vs. return was not in our favor after a 60%+ gain during the last nine months. We are long an apartment REIT trading 30% below fair value that yields over 5% on our cost basis and should raise its dividend by 10%+ in 2013.”

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...