Bailard’s long/short REIT strategy, Tower Lane, seeks to achieve positive returns regardless of the equity market’s general direction by using valuation fundamentals to actively select securities from the REIT sub-sector of the U.S. financial industry.

The strategy buys long those securities that we believe trade at a discount to their fair market value and sells short those that we believe trade at a premium. It maintains a market neutral position (net market exposure of less than +/-10% of gross assets) and seeks to avoid exposure to universe specific factors such as property types (apartment, retail, etc). Portfolios are typically diversified over approximately 50 equally weighted securities (half long and half short), with individual positions limited to 10% of gross assets.

In managing the strategy, we seek to minimize volatility, exposure to stock-specific and systematic risks, and the likelihood of significant losses.

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