The investment process for this strategy is organized along two key sources of alpha:
Top-down trend selection
Exploiting trends with long-term economic impact
Bottom-up stock selection
Identifying those companies that can best monetize such trends
The strategy will always have a minimum of three trends in the portfolio for diversification purposes. The strategy currently has four trends, which are as follows:
An increased demand for high tech and specialized assets. Underlying secular growth and barriers to entry are high.
Companies tend to move to the central business districts. Tenants want to cluster together.
Ecommerce is driving the split between prime and non-prime retail. Prime retail has a unique location, high entry barriers and is part of the multichannel strategy.
There is a housing shortage and an increased demand for rental housing. A social shift to rental lifestyles and tightening lending conditions drive growth.
Concentrated portfolio to reflect our highest-conviction stocks
Looking to take advantage of long-term, underestimated socioeconomic changes