One thing that Joe and I think is really an untapped resource at Framework is the professional background of our Framework members. We are trying to bring this experience into the forefront, both with some technological changes we’re going to be rolling out soon and with events like this Office Hour session, which was held on November 16, 2017.
The whole idea behind Framework is to create a community of knowledgeable, well-trained investors who can assess investment opportunities while drawing from the experience of the rest of the community.
One of Framework’s members, Robert Ruggirello, CFA, is an experienced investment manager who manages defined benefit pension assets on behalf of veterans of the Fire Department of New York. Robert uses real estate investment trusts — REITs — as an important pillar of his portfolio strategy, and has made a good case for including REITs in portfolios in general. Here is our conversation.
Brave Eagle’s Approach to REITs
What is your background and how did you get interested in REITs?
The Swenson Approach
David Swenson, CIO of Yale’s very successful endowment has an interesting perspective on portfolio diversification.
What are the most important basics of REITs to understand?
REIT Cash Flow Measures
Can you walk us through the way REITs talk about cash flows?
How do REITs protect against inflation during the life of their leases?
Understanding “Cap Rates”
What does “Cap Rate” mean and why is it important?
REIT Sector Breakdown
What REIT sectors are you interested in and why?
How do you think about allocations and position sizing?
Brave Eagle Positioning
What sectors are you invested in now?
What stocks do you like most in the Industrial REIT (eCommerce warehouse) space?
Terreno (TRNO) and eCommerce
Why is Terreno particularly well-suited to meet eCommerce demand?
REIT Relative Value
How do you think about the distinction between price and value for REITs?
REIT Taxation Issues
What’s the tax treatment for REITs?