Investment Philosophy

Investment Philosophy

Commercial Real Estate Investing

High quality commercial real estate has shown itself to be one of the best performing asset classes through history. High-rise office, infill warehouses, urban high-rise multifamily, and well-located retail assets have all generated exceptional risk adjusted returns across various macroeconomic backdrops. Finding commercial real estate exposure, however, can be challenging due to large capital commitments, long holding periods, and extensive management responsibilities.

REITs

Publicly traded REITs solve many of the problems of commercial real estate investment while maintaining the benefits. REITs are large commercial real estate owners that are traded on the public stock exchanges. Using the REIT market investors can assemble a well-diversified high-quality real estate portfolio of any size with relative ease.

Quantitative Investing

Behavioral science has taught us that human beings are hard-wired to make poor decisions in the stock market. Using a rules-based process based on sound theory allows Serenity to avoid behavioral traps that highly discretionary investors fall prey to. Our multi-factor model emphasizes value, momentum, and quality in order to ensure our client portfolios own only the best in class REITs .

The Serenity Edge

In a space dominated by fundamental investors, Serenity’s approach to the REIT market stands out. Using modern quantitative tools, we assemble REIT portfolios that maximize our clients exposure to irreplaceable real estate assets. By investing in a market with a proven track-record of strong risk-adjusted returns, we help our clients sleep well at night knowing their capital is committed to high quality real estate assets with secure and predictable cash flows.

REITs in our investable universe

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Annualized returns for REITs since 1990

Market cap of the REIT universe

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Average REIT dividend yield