Real Estate Hedge Fund List (Looking)

Disjoint's picture
Rank: Neanderthal | 3,915

Hi all,
Trying to put a list of hedge funds who invest primarily or have a team that invests mainly in Real Estate - debt or equity doesn't matter.
Names that come to mind so far:
Och Ziff
Davidson Kempner
Fir Tree
...
Go ahead keep adding, thanks!

Comments (35)

Best Response
Jul 30, 2016

Found a great list from @Jakesnake1 : Looking for more (debt in particular, as he did a great job with equity)

reit-dedicated LOs include - RREEF, C&S, CBRE Clarion, LaSalle, CenterSquare, Adelante.
Traditional LOs all have pretty large RE funds (i.e. T Rowe, BlackRock, American Century, Principal)

REIT-Specific Funds - Long Pond, Waterfront, Heitman, Security Cap, v3, 40 North, AEW, Wesley, Starwood.

As mentioned above, many of the big guys have pockets of RE money and RE-dedicated PMs..Citadel, Millenium, Surveyor, Balyasny, Alyeska, Weiss, etc.

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Aug 2, 2016
Disjoint:

Found a great list from @Jakesnake1 : Looking for more (debt in particular, as he did a great job with equity)

reit-dedicated LOs include - RREEF, C&S, CBRE Clarion, LaSalle, CenterSquare, Adelante.Traditional LOs all have pretty large RE funds (i.e. T Rowe, BlackRock, American Century, Principal)

REIT-Specific Funds - Long Pond, Waterfront, Heitman, Security Cap, v3, 40 North, AEW, Wesley, Starwood.

As mentioned above, many of the big guys have pockets of RE money and RE-dedicated PMs..Citadel, Millenium, Surveyor, Balyasny, Alyeska, Weiss, etc.

What is the difference between "REIT dedicated" and "REIT-specific"? Also, I'm assuming LO means long only?

Jul 30, 2016

Baopost - I believe they invest primarily on the asset/portfolio-level, but could be wrong
Land and Buildings - Invests in Equities

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Aug 2, 2016

Seth Klarman is a god.

Aug 5, 2016

Pretty sure you are correct about Baupost. I'm personally familiar with a sponsor that has done a few deals with their equity. They were pretty involved.

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Jul 30, 2016

Reit ER associate here and @Disjoint you pretty much hit the nail on the head with that list as far as top clients we reach out to. I can probably provide some more when I get back to the office Monday.

Jul 30, 2016

Cohen and Steers.

Jul 30, 2016

brookfield investment management, gem realty capital, 400 Capital Management, MKP Capital

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Aug 2, 2016

If one were to want to transition from more "traditional finance" (IB, PE, HF, etc.) to RE Finance and eventually want to invest directly in the hard assets down on his own with a large amount of capital, would you say it would be substantially better to work at a REPE shop as opposed to these RE focused HFs?

Aug 2, 2016

REPE shop. I believe the old adage of, "do you want to play golf, or do you want to fuck around", applies here. If you want to invest in real estate actively on your own account, then go do REPE and learn how to actually do it, but if you want to give your money to someone else to invest directly or trade REITs then go to a HF. Several HFs do touch asset level transactions, but if you're trying to build a strong foundation then you'd be hard pressed to top time spent at a top REPE shop actually participating in the RE markets.

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Aug 4, 2016
Count_Chocula:

REPE shop. I believe the old adage of, "do you want to play golf, or do you want to fuck around", applies here. If you want to invest in real estate actively on your own account, then go do REPE and learn how to actually do it, but if you want to give your money to someone else to invest directly or trade REITs then go to a HF. Several HFs do touch asset level transactions, but if you're trying to build a strong foundation then you'd be hard pressed to top time spent at a top REPE shop actually participating in the RE markets.

Additionally it's important to note the financial aspect of RE is the easiest in my opinion - understanding how a deal works, understanding the markets, understanding the operation aspect (be it core or opportunistic) is critical.

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Jul 30, 2016
Count_Chocula:

REPE shop. I believe the old adage of, "do you want to play golf, or do you want to fuck around", applies here. If you want to invest in real estate actively on your own account, then go do REPE and learn how to actually do it, but if you want to give your money to someone else to invest directly or trade REITs then go to a HF. Several HFs do touch asset level transactions, but if you're trying to build a strong foundation then you'd be hard pressed to top time spent at a top REPE shop actually participating in the RE markets.

I slightly disagree and agree. Not all HF are created equal. A lot of them have to grab NPL portfolios and end up having to tag team with operating partners to manage the assets. This is the same as most PE shop, most large PE shops have a couple of AM but most of it gets outsourced. Some HF you are right: just trade the onscreen papers, and they could be trading Russian bonds that would be the same thing.
With my post I was trying to get a better understanding of funds I might have missed to try and understand who is out there and what they do.

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Aug 2, 2016

I haven't come across these guys but I read in a book that Farallon does invest in real estate. Their website lists at least 10 people working in real estate strategy.

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Aug 4, 2016

Yep..Farallon has two RE Funds

Aug 5, 2016

Real Estate HF are great if you want to be doing real estate finance. If you want to chase $$$ only, you aren't ready of any of these jobs.

Aug 5, 2016

clarify

Aug 5, 2016

Real estate buyers are using swaps to obtain a fixed interest rate by taking a variable rate loan to buy a building. This ensures that the rental income the property will be sufficient to repay the loan, even if interest rates rise unexpectedly ..

Aug 5, 2016

Angelo, Gordon has a few non-PE RE-related-things like lease strategies, RE-related debt, etc. Garrison is a combo private/mezz debt and hedge fund that does RE but I dunno exactly where in the capital structure they are, ie if they take equity or just debt. Farallon has a RE group, but like the above, dunno if it's solely liquid RE debt or if it's equity as well.

If you include R- and C-MBS/CMOs, there are a lot of funds that are active but they are often very quant-focused fixed income funds or distressed opportunity funds.

I think a lot of HFs with new RE desks are just trying to ride an opportunity wave, just like when everyone was adding a structured product desk when CDO tranches were trading at a discount to the underlying collateral. Unclear if they'll stay in once that's past.

Aug 5, 2016

Check out the date of the original post.

That was about 6 weeks before BX closed on EOP and HLT was just a glimmer in their eye ... ahh, the good old days.

Aug 5, 2016

Haha wow, didn't see that! Kind of changes the context of the discussion...

Aug 5, 2016

Still interested in the insight!

Aug 5, 2016

Farallon, Baupost, Davidson Kempner, there are other ones too... I'm not sure if these funds have dedicated groups, but they definitely invest in RE in one for or another. A good way to find them is to look on Linkedin at people out of REPE firms that have moved into HFs...

Aug 5, 2016

I've been working at a real estate investment company for the last three years. I source deals, analyze them and negotiate with the seller. I worked full time through college and graduated from a small school with a 2.9 GPA. I'm searching for a job as an analyst and its looking bleak...Any insight or guidance?

Aug 5, 2016

Dude why in God's name would you attach not only your real name but your WORK EMAIL to this post?

Aug 5, 2016

I own part of the firm I'm working for and I'm one of the founding members. My partners and I are on great terms and I have expressed to them that I would like to move on and work for a larger firm and gain more experience. My partners support my decision to move on and are references on my resume. I do understand that this isn't conventional.

Aug 5, 2016

I own part of the firm I'm working for and I'm one of the founding members. My partners and I are on great terms and I have expressed to them that I would like to move on and work for a larger firm and gain more experience. My partners support my decision to move on and are references on my resume. I do understand that this isn't conventional.

If you don't see that this is a bad idea you're a lost cause, and lack common sense.

Aug 5, 2016

I'm changing it now thanks for the advice.

Aug 5, 2016

Remember, things that go online are permanent. You never know what/who you might not want to be associated with later in life.

Aug 5, 2016

Hayman Woods has a real-estate portion under Hayman Capital HF. J Kyle Bass.

Aug 5, 2016

Thanks for the info gcjohns.

Aug 4, 2016
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Aug 5, 2016
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