From a small northwestern observatory…

Monthly statistics hardly tell the story. On a day-to-day basis, this has been an extraordinarily volatile period for all sectors of the market. Our goal with ACCRE continues to be to outperform the S&P 500 while reducing volatility and providing diversification for a broad portfolio. Over the life of ACCRE, we’ve achieved this quite handily. However, the S&P has been doing rather better the past couple of months, while real estate has understandably lagged.

Probably the best measure of this is to compare ACCRE to the S&P Global Property Index (total return) which simply fell out of bed after the onset of the recession. As you can see, it tends to track the S&P 500 fairly well, and hence provides less diversification than ACCRE. Thus, in the last three months, both of these benchmarks have regained some of their lost ground. Conversely, ACCRE has stagnated somewhat since the March sell-off, and had a particularly rough June. However, we continue to dominate both of the benchmarks, both on a life-of-fund basis as well as over the past six months. Thus, I think we’re where we want to be right now.

I hope to have some volatility metrics, Sharpe’s Ratio, and other portfolio data around the middle of July. Stay safe!