As shown, a dollar invested in ACCRE at the inception (four years ago) would be worth $1.56 today. For most of the last four years, ACCRE has handily beaten the S&P, but the strong bull market for the past year has really turned that around. Conversely, the S&P Real Estate index languished for most of the last four years, but has performed nicely in the last 12 months.
| S&P 500 | |
| Average Daily Excess Return | 0.0498% |
| Standard Deviation | 1.2977% |
| Sharpes Ratio | 3.8369% |
| ACCRE | |
| Average Daily Excess Return | 0.0365% |
| Standard Deviation | 1.2010% |
| Sharpes Ratio | 3.0393% |
| Correlation (life of the fund) | 51.9182% |
| Correlation (month of April) | 16.3113% |
The Sharpes Ratios are calculated for the life of the fund, as is the overall correlation. Most months, ACCRE beats the S&P, but as we all know, the S&P has been on a very real bull tear this past year. Certainly, we all hope that continues! The overall correlation (life of the fund) is just where we want it, but the correlation for April, while positive, is surprisingly low. Digging into the data a bit further, we find that the S&P, while doing great, nonetheless had some bounces during the month. ACCRE, on the other hand played the “slow and steady wins the race” game.
We may reconsider some of our positions this month, and of course our subscribers will get immediate notification of any trades. In the meantime, if I can answer any questions about REITs or Real Estate Finance in general, please don’t hesitate to reach out.
John A. Kilpatrick, Ph.D. — [email protected]
This post first appeared on From A Small Northwestern Observatory... | Finance, please read the originial post: here
