Based on the principles of value investing, below we have highlighted some of our main strategies:
WE CAREFULLY ANALYZE EACH ACQUISITION, USING COMMON SENSE AND THOUGHTFUL ASSUMPTIONS IN WHICH TO BASE OUR INVESTMENT ANALYSIS.
Although we embrace sophisticated models and have built and developed our own proprietary models for analysis, we strongly believe real estate investing is an art, and less so a science.
GREAT POND UNDERSTANDS THAT IT IS NECESSARY TO INVEST IN RELATIVELY BARGAIN-PRICED REAL ESTATE ASSETS THAT PROVIDE US WITH A “MARGIN OF SAFETY” TO ACCOUNT FOR ANY NUMBER OF CIRCUMSTANCES.
Given this, we seek out the highest quality assets within each target real estate space.
THERE ARE MULTIPLE ARBITRAGE OPPORTUNITIES PRESENT IN TODAY’S MARKET.
We look for and consider these opportunities based on factors such as proprietary metrics, lease considerations and geographic location. In the core space we also consider the arbitrage opportunities realized in the difference between a lease guarantor’s bond rating on their corporate debt and the capitalized value of their operating leases. We evaluate real estate positioning relative to competition, construction quality, and demographics.
WE BELIEVE IN THE IRRATIONALITY OF MARKETS.
By focusing on the intrinsic value of an asset we believe we can capitalize on market distortions caused by this irrationality.
WE ARE RISK AVERSE.
As value investors we weigh the benefits of any perceived gain by the cost of the potential equivalent loss. Given this, we believe that due to the current economic climate and our unique skill set in this space, our efforts are best suited to focus on the acquisition of core, distressed and value-added real estate assets.
WE BELIEVE MARKETS CAN BE UNPREDICTABLE.
We feel our strategy is the best real estate investment approach to mitigate the unpredictability of markets.
WE DO NOT BELIEVE TAKING HIGH LEVELS OF RISK IS A PREREQUISITE FOR INCREASED RETURNS.
We do, in fact, believe in the alternative, that sustaining high compounded rates of growth can only be achieved by avoiding significant loss.
OUR TEAM OF EXPERTS IS COGNIZANT OF CURRENT MARKET DISTORTIONS AND THEIR IMPACT ON ASSET VALUATION.
As such, we match duration of leverage with our investment horizon, carefully analyze exit cap rates and consider amortization.