ACCRE Mid-Month Report

Sigh… late, but not forgotten!  Just like my Christmas shopping.  We hope everyone is having a great holiday season, and looking forward to a super new year.

As usual, our mid-month report will deal with Sharpe Ratios and S&P correlation.  The S&P had a fantastic November, from an excess-return perspective. The S&P 500 Sharpe Ratio increased from 0.0265 to 0.0313.  That may not seem like much of a gain, but these are daily excess returns, divided by the standard deviation.  The S&P standard deviation fell just a bit and excess returns (the average daily return minus the return that would have been earned in the short-term T-bill) jumped by nearly 20%.  If you follow any sort of technical trading scheme, November had a real impact in your 50-day (and shorter) moving averages.

Dec Mid Month S&P MA

I point all this out just to note that the S&P has been surprisingly hard to beat the past few months.  Will the broad index keep this up?  Well, that remains to be seen.

As noted in our previous report, ACCRE had a solid but not spectacular November.  On a risk-adjusted basis, ACCRE continues to out-shine the S&P with a Sharpe Ratio of 0.0606 since inception.  Intriguingly, ACCRE’s correlation with the S&P continues to decline, falling to 15.57% in November.  This really suggests that the market is increasingly looking at real estate as something very different from the market as a whole.

Notably, moving averages on portfolios are not like those on individual stocks.  Traders are price takers for stocks, and so when a stock moves relative to its MA, the trader has to make a “buy-sell-short” decision.  With a portfolio, however, we can make adjustments on a more granular level.  We made several trades this past week, and our subscribers received an alert with the new portfolio make-up during the trading day.

Best wishes to you all, and we’ll be back right after the first of the year.

ACCRE November Report

Wow… time flies in the holiday season!  Normally, I want these end-of-month reports to hit pretty close to the end of the month.  However, Thanksgiving and a biz trip to NYC massively upset my schedule.  Mea culpa…

Anyway, November was a good month for investments in general, but real estate was bland overall.  Note that the S&P Property Index actually retrenched a bit in November, in no small part because there is so much excitement in the S&P 500.  We pulled out a nice, positive month, although not quite as aggressive as we’d hoped.  I had considered some portfolio rebalancing in November, but when I saw how we were doing relative to the rest of the real estate market, I decided hands-off was the better part of valor.

Dollar invested 11 29 19

I’ll be back in a few days with the mid-month report, and as always, subscribers will receive notifications of any portfolio changes.  Best wishes for a great December!