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Guggenheim
Guggenheim Real Estate
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Strategy
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Investment Strategy

Sources of Alpha

We believe we can achieve above benchmark performance without increasing risk by selecting and hiring top-tier investment managers in each segment of the market, co-investing with local operating partners, and actively managing money through sophisticated analytics that guide our allocations to geographic markets, property types, leverage, and form of investment (public vs. private).

Through substantial expenditures on research, proprietary internal analytic models, market feedback at the local level, and our system for selecting top-tier managers to execute the strategies, our strategy is designed to outperform a blended benchmark (70% NCREIF/30% FTSE NAREIT).

Guggenheim Real Estate has identified six specific ways in which we believe we can achieve returns above the benchmark while minimizing risk:

  1. Manager evaluation – select managers and local operating partners with the best execution capabilities in each market segment.
  2. Public/private arbitrage – adjust portfolio weightings between the public and private markets to take advantage of pricing differences identified by internal proprietary models.
  3. Market selection by property type and geography – use our top-down allocation models to construct (and monitor) a core, diversified real estate portfolio.
  4. Valuation focus – utilize our proprietary fund evaluation model to identify market opportunities.
  5. Active management of leverage – tactically use leverage across portfolio investments. 
  6. Limited development/repositioning exposure – take advantage of modest value-add opportunities to strategically position investments within the direct property portfolio.