Findings from an academic study that focused on investing in listed infrastucture entities
If you are looking to identify infrastructure investment opportunities: consider a country’s macro economic stability, its legal and political environment and its demographic profile.
In identifying specific securities within a chosen infrastructure sector it is important to review the level of leverage, market capitalisation, the future prospects, the rules and regulations and the country’s return on capital employed (ROCE).
A Commercial Real Estate Fund
Fund offers investors a market neutral exposure to commercial real-estate
Market is characterised by a lack of transparency, non-homogeneity of assets, varying levels of expertise - which leads to mispricing
Benefits more from a high volatility environment
Real estate information edge and risk management expertise
CDS Indices, strategies that have performed during the sub-prime crisis...
Part II - Expertise with Ernesto Prado
Credit default swaps (CDS) and their related indices have proved their “hedge-ability” during the current crisis.
Whether used directly as single name credit insurance or as generic spread market beta insurance, they have enabled certain hedge funds to weather the current widening of credit risk premia.
However, they tend to exhibit very specific differences when it comes to their effectiveness, ease of use and in determining their reliability as hedges - as has been witnessed by their recent exposure to volatility.