Hedge fund Reech AiM said on Monday that its flagship $160 million (82 million pound) Iceberg European real estate fund posted a 29 percent net return in its first year, massively outperforming underlying commercial property markets.
According to data from Investment Property Databank, the combined rental income and capital growth return on British commercial property in the same May-April period was minus 12.4 percent, while the EPRA/NAREIT European property share index lost 25 percent.
A spokesman for Reech AiM said the Iceberg fund had increased its exposure to mainland European property but was still heavily weighted towards Britain, where trading in property derivatives was most established and where comparative valuation data was most readily available.
The fund seeks to exploit relative value differences between different markets in property index derivatives, property shares, and property funds, and has generated a 4.1 percent net return in the first four months of the year.
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