Saturday, 23 July 2016
Last updated 23 hours ago
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.”