PERFORMANCE – Serenity Alternatives Fund I returned +4.11% in December net of fees and expenses, bringing year to date returns to +19.6%. The FTSE NAREIT All Equity REITs Index returned +2.45% for
the month and returned -5.1% in 2020.
2020 IN REVIEW: A PLAY IN THREE ACTS
Q1: Opportunities are scarce as the economic cycle draws to a close. Serenity Alts is focused on preserving client capital in the face of a possible recession (we are hedged). Then the virus hits. The REIT market ends Q1 down -23.5% with Serenity down only -3.7%. This is what hedge funds do best.
Q2/Q3: The Coronavirus pandemic ravages the world’s economies, creating a new set of winners and losers in the stock market and in REITs. Serenity Alts treads cautiously.
Q4: As the pandemic hits a new phase, a light at the end of the tunnel begins to glimmer. Serenity swoops in to invest opportunistically while many competitors wait on the sidelines. Fund 1 returns +20.6% net of fees in November and December.
THE ROAD AHEAD: 2020 has ended and the dawn of a new economic cycle lies just over the horizon. The path will not always be smooth, but REIT buying opportunities abound for the vigilant and decisive.
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