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Investment Styles and Style Boxes in Equity Real Estate: Can the Emerging Model Succeed in Classifying Real Estate Alternatives?
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Journal of Real Estate Portfolio Management
- Article date:
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January 1, 2005
- Author:
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Copyright informationCopyright American Real Estate Society Jan-Apr 2005. Provided by ProQuest LLC. (Hide copyright information)
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Executive Summary. The real estate industry is working to develop a system of "style boxes," with the recent NCREIF white paper seeking to define "core," "value-added" and "opportunistic" styles of investing in private market real estate. This sterns from the desire for: (1) a framework to facilitate the investment process; (2) a common language; (3) targeted portfolio strategy and balance; and (4) a simpler search and selection process for advisors. However, where style box use in the public securities industry is based on defining the attributes of a benchmark universe, the institutional real estate investment industry seeks to define boxes based on expected risk / return ranges, and then ...
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