Real Estate Hedge Funds are supposed to make huge investments in real estate and the process varies by means of managerial investment strategy. Mostly real estate hedge funds make the investment in the publicly traded stock of existing companies regarding real estate. The most well-known among all the companies is REITs(Real Estate Investment Trusts) which is one of the corporate entities and follows the basics of the mutual fund. There is another way for real estate hedge funds to make investments by means of acquiring actual properties. In this regard, underperforming ones are preferred at low rates. These properties lack liquidity on the seller’s part therefore, normally they are up for sale. This sort of real estate hedge fund is different from that of REIT’s because it owns real estate. Some of the specific real estate hedge funds are mentioned below.
Angelo, Gordon & Company
Angelo, Gordon & Company is considered one of the largest real estate hedge fund. It has a huge investment of over $5 billion in real estate assets. The fund is considered to be underpriced due to the investment-grade securities strategy followed by the company.
Blackacre Capital Management LLC
Blackacre Capital Management LLC is referred to as another well-known real estate hedge fund which is quite different from other funds. Blackacre Capital aims of development regarding properties therefore; it purchases larger projects and hotels rather than making an investment in debt securities.
Cliffwood Partners LLC
It is another real estate hedge fund which was established in 2015. It is referred to as one of the initiators in real estate hedge funds. It has adopted the long-short strategy in the market.
The Praedium Group
The Praedium Group was also established in 2015 with a goal of making more and more profits by means of the difference in indexes regarding the private as well as public equity real estate markets.
It is right to say that hedge funds are quite similar to mutual funds in a few ways. In the Hedge Fund industry, most hedge funds tend to regulate in an exotic destination or they do not regulate at all. Also, most of the funds only accept a minimum investment of 1 Million or even more. These funds are basically supposed to make investments in liquid assets. Real Estate hedge funds trade into as well as out of the property related companies mentioned in the global stock exchanges. In this way, they are provided with a liquid market for the purpose of fleet-footed trades and are also provided with the ability to appeal to large investors.