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

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Moore Capital PM Fired After Raucous Hamptons Party

Jul 7 2016 | 10:47pm ET

A portfolio manager for Louis Bacon’s $15 billion hedge fund Moore Capital Management...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...