Are you developing your own personal investment philosophy? Or curious about how we think ?
Our Asset & Investment Management Philosophy
We have over 5 decades of experience in owning, operating and investing in tangible assets. Our Core+Opportunistic philosopy focuses on acquiring undermanaged, well-located and stabilized assets with a high intrinsic value, long investment horizon and moderate leverage across diverse regions, where we can unlock additional value by instituting best-in-class asset management. We engage only in friendly transactions where our capital, strategic insight, relationships and management can drive transformation.
The Primacy of Risk Control
Protecting capital is at the forefront of how we think about risk and, therefore, we pursue a prudent and disciplined approach to investing and leverage with the aim of delivering risk-adjusted returns. Our investment approach is based on a disciplined due diligence process that measures risk while identifying the catalysts for increased value. It is our overriding belief that, especially in the opportunistic markets in which we work, “”if we avoid the losers, the winners will take care of themselves.””
Active Investment & Behavior Management
We use overall portfolio structuring as a defensive tool to help us avoid dangerous concentration, rather than as a weapon that gives aggressive returns. A large part of our value resides in managing our investment behaviours. The dominant factor in our long-term, financial outcomes is not ‘investment performance’; instead, it’s our behavioural response management. We do not exhibit emotional response to market movements.
Emphasizing Consistency, Disavowing Market Timing
We seek to apply a long-term buy-and-hold strategy to scalable and repeatable real-estate assets with a focus on delivering stable, long-term capital appreciation together with a predictable annual cash flow yield. Our success is based on executing a repeatable investment process. When we acquire an asset, we focus on building it to last. Our staying power, drawn from the scale and breadth of the platform we’ve grown over 35 years, helps our assets withstand market cycles and succeed for the long term.
We do not believe in the predictive ability required to correctly time markets. We keep portfolios fully invested whenever attractively priced assets can be bought. To a large extent, we do not attempt to analyse current events or perceived threats to markets. Instead, we patiently stick to the long-term plan and ride out short-term volatility. Market predictions are insignificant and not critical to our investing.
The Anti-Approach: Anti-startup Anti-activity
Do small things that solve small problems, open-source everything and do not monetize ideas
Only set non-goals – things we want to try ‘not’ to do
Only move at the speed of trust
Redefine MVP (min) to MxVP (max)
Big Ideas, Small Execution, Negligible Operations
No hiring
