Reuters- Investment boutique Thames River Capital said on Friday it will launch a hedge fund investing in real estate stocks and derivatives at the end of this month.
The Thames River Longstone fund, a long/short equity fund, will be managed by Marcus Phayre-Mudge and Christian Roos and will target an annual return of 12-15 percent.
The launch comes at a time of increasing concern among many commentators over the future direction of commercial real estate prices, with the share prices of many listed property funds and real estate investment trusts (REITs) currently standing at deep, double-digit percentage discounts to net asset value.
“The yield compression of the last three years, across all real estate segments and regions, is unwinding and the recent credit tightening is hastening that process,” Phayre-Mudge said in a note.
