Strategic Investment Group

HOW RISK IS BEING MISPRICED IN REAL ESTATE

October 2003

Over the past year, despite further deterioration in real estate market fundamentals, investors have continued to bid aggressively for core, well leased properties. Real estate yields have continued to fall, as investors have reacted to the high spread between real estate yields and risk-free rates. Meanwhile, equity prices have soared, driving earnings yields well below historical averages. We believe that overemphasizing the cost of capital and minimizing the impact of industry fundamentals in the pricing of financial assets has the potential to lead to disappointing investment returns. The current real estate environment illustrates this thesis.

Previous Brief >

| Privacy Policy

| Site Map

| Client Login

Strategic Investment Group Home | Portfolio Management Solutions | Asset Allocation | Contact Strategic Investment Group

® A registered service mark for affiliated investment managers: Strategic Investment Partners, Inc.; Strategic Investment Management, L.P.

Nothing on this site should be considered a solicitation to buy or an offer to sell shares of any Strategic product in any jurisdiction where the offer or

solicitation would be unlawful under the securities law of such jurisdiction.