From a small northwestern observatory…

The chart says it all — the past 3 months have been the worst stretch in the history of ACCRE. Ironically, it has been a very good period for the S&P and for REITs and real estate as a whole. Why, you ask? Simply put, we had positions adverse to student housing and other holdings that were laggards due to COVID, but the good news of November — which is good news for us all — caught us by surprise. Indeed, all of our losses happened in just a few days mid-month.

It is axiomatic not to be too aggressive in clawing back losses. We made a small portfolio adjustment, and December is already looking positive. We’ll probably take on some other positions in the coming days. Note that one of our principal strategies is to stay sane with our portfolio — historically, we’ve only beaten the S&P 50% of the time, on a month-to-month basis. However, we try to stay away from big market moves, enjoying the upside without suffering big bear market moves.

As always, our subscribers receive same-day notification of any portfolio changes. Best wishes to you all — we hope you had a great Thanksgiving, and you’re all looking forward to a great holiday season.