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Like everyone else, we’ve been wrestling with a bear in December. However, our investment philosophy appears to be serving us comparatively well for a fully-invested fund.
Total return for December was negative 4.74%, which compares favorably to the negative 9.18% recorded by the S&P benchmark. The NAREIT index also had a bad month, turning in a negative 7.73%. We continue to keep a little bit of powder dry for right now, and in fact may shed some assets in January to take advantage of perceived buying opportunities in other REIT shares.
A dollar invested in ACCRE at the inception is worth $1.33 today, compared to $1.06 if invested in the S&P and $1.01 if invested in a REIT index fund.
Our Sharpe Ratio continues to beat the S&P handily. We’re positive (about 5% excess returns when adjusted for volatility) while the excess return metric for the S&P has now turned negative.
Best wishes for a great new year, and we’ll keep you posted as and when we make fund adjustments.