My apologies that this public update is late this month. The private update went out to subscribers on-time, but my travels and my “blog posts” don’t often line up with one another!
January was a great month for both ACCRE and for the market as a whole. Generally speaking, REITs did very well in January, although ACCRE continues to outpace the overall REIT market and the overall equities market.
On a “dollar invested” basis, ACCRE hit an all-time high of $1.45 since its inception on April 1, 2017. This translates to a cumulative return of 44.57% over the life of the fund. For comparison, the S&P had a cumulative return of 14.45% over that same period, and the NAREIT index was up 11.33% over the same time frame.
ACCRE continues to enjoy above-average risk adjusted returns, as measured by the Sharpe Ratio. Since 4/1/17, the S&P Sharpe Ratio (the ratio of cumulative excess returns to standard deviation of those excess returns) stood at 0.0176. ACCRE’s Sharpe Ratio, on the other hand, is 0.0639. In other words, on a risk-adjusted basis, ACCRE has enjoyed over 3 times the return as the S&P.
Finally, the correlation between ACCRE’s daily returns and the S&P daily returns over the life of the fund stands at 43.88%. In short, ACCRE continues to be a significant risk attenuator in a diversified portfolio.