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White Papers: Portfolio Management

A look at how REIT exposure may enhance risk adjusted portfolio returns.

Over the years we have had countless conversations with investors regarding their exposure to public real estate, primarily if, and how much to allocate. The purpose of this whitepaper is to frame the question within the rigor of the Markowitz Mean Variance Efficiency Frontier, the basis for Modern Portfolio Theory (“MPT”), for which Harry Markowitz was awarded the Nobel Prize in 1990. Derived from nearly 40 years of historical performance, our findings show that adding publicly-traded real estate to a stock and bond portfolio has historically improved a portfolio’s risk/return profile versus one comprised solely of stocks and bonds.

Download the Portfolio Management White Paper