Altegris Launches L/S Real Estate Mutual Fund

Feb 18 2014 | 2:12pm ET

La Jolla, Calif.-based alternative investment specialist Altegris has launched a long/short real estate mutual fund.

The Altegris/AACA Real Estate Long Short Fund seeks to deliver higher risk-adjusted returns than traditional long-only real estate strategies, while also potentially providing an inflation hedge and a durable stream of income.

The fund is sub-advised by American Assets Investment Management, which was formed in 2002 and employs a strategy focused on equity securities of real estate investment trusts and real estate companies in sectors where tenants are not inclined to move, as when there are few participants in sector, or tenants have high-demand drivers for their businesses or new owners face high entry barriers, or developers and tenants face high exit barriers.

“Real estate holdings are an essential component of a well-diversified portfolio designed to build and preserve capital in all market conditions,” said Jon Sundt, president and CEO of Altegris, in a statement. “We are giving investors an opportunity to achieve strong, inflation-hedged returns across an entire real estate market cycle.”

“Our ability to make both long and short investments, coupled with the fact that we are not beholden to shadowing an index, gives us the freedom to create a portfolio composed of only those real estate securities we believe to have greatest total return potential,” said Burland B. East III, CEO of AACA, in a statement.

“High-quality real estate run by high-quality management teams in high-quality locations may provide consistent capital over the long term, but our investment strategy seeks to mitigate the downside effects in the event of inflation.”

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