REIT Hedge Fund Up In Down Market

Feb 6 2009 | 1:16pm ET

Arcanum Capital Management’s REIT Investment Fund got off to a good start to the new year. The fund returned 3.4% in January while the average real estate investment trust dropped more than 17%, erasing all the gains from December’s rally.

About 20% of the REITs that the firm is monitoring are now trading below $5, according to portfolio manager Henrik Laulund, in an investor letter.

“The large REIT correction over the last few months has brought REIT prices down to a more reasonable level,” he wrote. “Compared to real estate sold on the private market REITs are now trading at huge discounts and appear inexpensive. Compared to stocks in general REITs are now also reasonable priced.”

However, Laulund added that it is difficult to say if the market has reached the bottom because it tends to overreact in both directions.

Arcanum’s fund gained 21.8% last year.


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

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...