Our Investing Style

The style we employ for fund investing is a conservative one.  One that focuses on fundamentals and constantly searches the market for intrinsic value.

In general, we are strong believers in the market’s natural regression toward the mean, and, therefore, are not capital markets or momentum investors.  As a result, our leaning tends toward idiosyncratic opportunities versus systemic opportunities, toward market anomalies versus market trends, and toward skepticism versus optimism.

More specifically, our style calls for a highly disciplined, comprehensive  approach to investing that links micro level investment sourcing, underwriting, and asset management practices directly to our macro level investing strategy for a particular fund or program. 

Key to our Investing Style are the following 10 proven principles:

• We place a high emphasis on the preservation of capital.
• We know and adhere to our risk profile.
• We pro-actively manage the downside risk in our investments.
• We enhance the upside potential of our investments through seasoned underwriting expertise and meticulous underwriting practices.
• We seek investment returns that are positively disproportionate to the market’s perception of the risk taken.
• We utilize our capital markets and operational expertise to exploit idiosyncratic inefficiencies and add value to investments.
• We don’t make aggressive assumptions about factors beyond our influence and control. (e.g. exit cap rate, interest rates, rent rates, etc.)
• We draw upon our deep structuring expertise to give us the best risk reward scenario in the capitalization of any asset position, be it in the form of fee simple ownership, preferred equity, senior debt, mezzanine debt and/or leaseholds, in either controlling or non-controlling interests.
• We build our portfolios defensively, cautiously factoring in potential downside risks.
• We learn from past market conditions and experiences and utilize that knowledge in future investing scenarios.

These principles create the foundation for the investment sourcing, underwriting, and asset management practices that comprise our daily activities, also known as our Investing Methodology.  In linking all aspects of our Investing Methodology back to this Investing Style, we believe we have a higher probability of achieving both our investing objectives and our client’s expectations.