The information contained herein should be considered to be current only as of the date indicated, and we do not undertake any obligation to update the information contained herein in light of later circumstances or events. This publication may contain forward looking statements and projections that are based on the current beliefs and assumptions of Chilton Capital Management and on information currently available that we believe to be reasonable, however, such statements necessarily involve risks, uncertainties and assumptions, and prospective investors may not put undue reliance on any of these statements. This communication is provided for informational purposes only and does not constitute an offer or a solicitation to buy, hold, or sell an interest in any Chilton Capital Management investment or any other security.
Year to date, the largest contributors to relative performance were an overweight allocation to data center/tech sector, and stock selection within the residential and lodging sectors. Detractors from relative performance included an overweight to malls, and underweight allocations to the self storage and triple net sectors.
Positive contributors to relative performance included stock selection within the regional mall and specialty sectors, and an underweight to the self storage sector. Stock selection within the data centers/tech, office, and industrial sectors detracted from relative performance.
In the October 2019 REIT Outlook titled, “The Chilton Global Real Estate Strategy,” we announce the launch of a new strategy that incorporates both international and US real estate securities. Publicly traded international real estate companies have made significant strides over the past 10 years to make themselves more “investable”. We believe the addition of an international real estate ETF to our active US REIT strategy can produce attractive risk-adjusted returns over the long term due to the low correlation between the US and international markets.
The use of a passive ETF maximizes diversification of currency, geopolitical, and economic risk while also minimizing expenses. Furthermore, the Chilton Global Real Estate Strategy uses proprietary analysis to take advantage of arbitrage opportunities between the US and international markets by shifting allocations between the two.
The strategy is off to a great start after launching on February 1, 2019, producing net and gross total returns of +8.0% and +8.4%, respectively, through August 31. In comparison, the benchmark FTSE EPRA/NAREIT Global Index Net TR (Bloomberg: TRNHGU) produced a total return of +4.6%.
Please reach out to your appropriate Chilton contact for more information about the strategy.
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