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Article: Real estate funds may be poised to bounce back; But some say the bubble is about to burst.(News)
- Article from:
- Investment News
- Article date:
- April 25, 2005
CopyrightCOPYRIGHT 2005 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Frederick P. Gabriel Jr.
BOSTON - Don't count out real estate mutual funds yet.
The run on such funds, which rewarded investors with an average 32% gain last year, isn't over, despite the fact that they are now in a funk, some portfolio managers and analysts say.
The average fund, which invests mainly in real estate investment trusts, lost 6.68% during the first quarter, earning the category a seat among the quarter's worst performers.
"Most of what you are seeing right now is nothing more than a knee-jerk reaction from amateurs,'' said Leo Wells, president of Wells Real Estate Funds in Atlanta. "Most investors still can't ...