Finding the Right REIT

Published on
June 15th, 2018
Topic
Technology, Valuation
Duration
16 minutes
Asset class
Bonds/Rates/Credit, Real Estate

Finding the Right REIT

Trade Ideas ·
Featuring Kevin Kelly

Published on: June 15th, 2018 • Duration: 16 minutes • Asset Class: Bonds/Rates/Credit, Real Estate • Topic: Technology, Valuation

Kevin Kelly, managing partner of Benchmark Investments, presents his pairs trade on REITs. He explains how best to profit from real estate in a rising rate environment in this interview with Justine Underhill. Filmed on June 11, 2018.

Comments

  • CM
    Carlos M.
    15 June 2018 @ 10:04
    as a summary you short VNQ and long SRVR, they are positively correlated ... but unless he did the sum of the parts to have a bit of history you cannot possibly say that if one goes down 10% the other one goes down 4% with any degree of confidence since it is a very new product. plus it probably has a high correlation with the tech industry which in my view we should be expecting some sector rotation soon. plus you have a negative carry ( -4%+ 3.3% ) without adding any other fees and you are planning on holding it for 3 years. sorry but it did not convince me, great way of promoting a new etf though. :)
  • SS
    Steve S.
    15 June 2018 @ 13:45
    The returns over a 3 year period (about 10%) isn't very appealing.
  • SS
    Sam S.
    15 June 2018 @ 13:53
    Well done, informative, and excellent presentation from both!
  • SC
    Sean C.
    15 June 2018 @ 14:04
    Clearly appears to be a spread trade and not two separate trades. As such shouldn't both entry levels and stops be on a spread basis and not separate? Given that it is a spread would have been nice to see some discussion as to whether he recommends the spread being dollar neutral, beta neutral, or maybe even yield/carry neutral.
  • MM
    Mike M.
    15 June 2018 @ 15:41
    Liquidity, SRVR has traded only 200 shares today? Stop is meaningless. Best regards, Mike
    • RS
      Rajesh S.
      17 June 2018 @ 16:51
      Agreed, plus AUM is only $2.6 M. Idea worth exploring with better selection of securities.
  • RM
    Russell M.
    15 June 2018 @ 18:13
    For me, I don’t care for pairs. However I sometimes consider a long in AMT, one of the heavy weights in his etf, but in the end I am never willing to pay that much. I don’t like pricey yield stuff. All I want is a growth rate, a multiple, and a chart I can swing trade. I keep passing.
  • TT
    Tim T.
    15 June 2018 @ 21:44
    Any time someone makes a prediction more than a few years out I giggle....especially an aggressive one. "50 to 100 years" is a ridiculous prediction....no one know what things that far out will look like investment wise.
  • AL
    Alfonso L.
    16 June 2018 @ 18:49
    In terms of SRVR, I hear him about the growth of data centers. But some part of me sees things shrinking dramatically in terms of size, and increasing in terms of performance. I like the idea of Data Center REIT's, and I see the value of them not being owned by the large technology users, but instead being leased. But, somewhere in here I think the size of the computers might drop and then the demand for space might shrink. It's unlikely, but I'm not sure that I prefer these dramatically to say an apartment complex where i'm only betting on the population gently increasing to keep my complex full.
  • LD
    Leo D.
    17 June 2018 @ 05:06
    It would be interesting to invite Brad Thomas on for some counterpoints to the rates going up = REITs going down narrative. Just a suggestion because I would like to hear both sides of the argument.
  • OT
    O T.
    17 June 2018 @ 14:39
    What a gem! Go to 3:30 where we hear that "SRVR provides the backbone for 21, 22 and 23 century". Yes, Kevin we ( I mean homo sapiens) nailed it as we are so good at predicting the next quarter of two why not leap 200-300 years ahead into the future. I am sorry, I could not continue watching after that as it so obviously above my comprehension and imagination.
  • AS
    Amit S.
    20 June 2018 @ 11:18
    There are times when I find better insights under the comments section than in the actual video/content!

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