Institutional investors have gravitated toward real assets investments for decades.
After all, these often-private deals – which tend to benefit from the contractual nature of their cash flows and the durability of those cash flow streams – generally resulted in lower volatility and attractive, equity-like returns. Plus, investors in these assets typically weren’t bothered by huge month-to-month price swings like investments in public securities.
The actual assets themselves were also intriguing. Unlike complicated investments like structured credit or derivatives, one can experience real assets with all five senses.
Whether it’s walking through a quiet timber forest, tasting freshly harvested corn from a Midwest farm, gazing off the top of a hydroelectric dam or touring a modern apartment complex, investing in real assets can offer an immersive experience where the value it offers is plain to see.
These assets are also essential to the functioning of modern society. For example, real assets are:
When Versus Capital Advisors was founded in 2010, our founders’ goal was to provide a way for financial advisors to provide their clients with access to these types of investments that had previously been difficult to access. To accomplish this, our founders utilized a vehicle that had been around since the early 1990s: the interval fund. The rest is history, and we are proud that over a decade after the inception of our first fund (VCMIX), Versus has succeeded in providing investors with strong risk-adjusted return profiles with low beta and low correlations to mainstream equity and bond indices.
Versus Capital is committed to providing institutional-quality communications, including our in-depth monthly commentaries, our informative video content library and this blog.
In our blog posts, we will be sharing our thoughts on real assets investing, market tailwinds and headwinds, sector-specific updates, and ideas we are incorporating into our portfolios.
We will also be sharing:
If you have a specific blog topic or question you would like for us to write about, please feel free to send us a note. We look forward to interacting with you.
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Best wishes always,
The Versus Capital Investment Team
Investing in Real Assets since 2012