Investment Opportunities
Hazelview
Alternative Real Estate Fund
Overview
Hazelview Alternative Real Estate Fund (the “Fund”) is a liquid alternative designed to meet the demand for liquid real estate while prioritizing reduced volatility, drawdowns and capital preservation.
The Fund utilizes the Liquid Alternative framework, leverages various financial tools including derivatives and fixed-income securities capitalize on pricing inefficiencies across long and short positions, and incorporates dynamic beta management to retain upside capture in bull markets while limiting downside in bear markets.
Investment Approach
Our methodology merges fundamental research with quantitative analysis powered by machine learning. Company fundamentals, market trends, and economic indicators are analyzed while leveraging advanced algorithms to uncover hidden insights and optimize portfolio construction.
Long Only (“LO”): Bread-and-butter process that generates superior return on top of market beta
Uncorrelated Alpha (“UA”): Overlay of diverse trading strategies that can produce alpha in both up and down markets
Dynamic Beta Model: Shifts capital allocation between “LO” and “UA” based on best risk-adjusted upside
Key Facts
Fund Codes | Series F - HZI 254 Seres F1 - HZI 253 |
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Inception Date | 18-Jan-23 |
AUM | $9,463,115* |
Management Fee | Series F - 1.00% Series F1 - 0.90% |
Fund Manager | Hazelview Securities |
Distributions | Quarterly |
Minimum Investment | $500 initially, $100 subsequent |
RRSP Eligible | Yes |
*As at December 31, 2024.
Global Real Estate Securities investments are managed by Hazelview Securities.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently past performance may not be repeated.
Net Asset Value/Unit
Series F1 Units
$12.36
(As of February 14, 2025)
Series F Units
-
(As of December 31, 2024)
Series F1 Distribution History
2023
Record Date | Monthly Dividend |
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Series F Distribution History
2023
Record Date | Monthly Dividend |
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Manager Commentary
Quarterly Highlights - December 2024
- The Fund returned -2.3% on a net basis in December. The broader stock market sold off last month following hawkish commentary from the Fed on the number of rate cuts in 2025. Despite this volatility, the Fund managed to capture only 54% of the global REIT market’s sell-off, in line with our year-to-date average downside capture ratio of 52%. Our analysis suggests that the market’s knee-jerk reaction more than fully priced in the slower pace of rate cuts. With valuations returning to more attractive levels, the Fund increased its beta exposure towards the end of the month. Outsized gains on United Homes Group (UHG) convertible bonds and Sunstone Hotel (SHO), both top holdings in the portfolio, helped to mitigate losses. UHG is a homebuilder focusing on the U.S. Southeast market. We participated in its convertible bond offering in spring 2023 as a Private Investment in Public Equity. Purchased at a discount to par with a 15% yield, the bond was redeemed at a significant premium in December, generating a ~47% IRR for the Fund. Sunstone Hotel is a high-conviction pick in the lodging sector, featuring strong RevPAR growth potential and a conservative balance sheet. The name appears in both our long-only portfolio and the long side of the market-neutral portfolio. One of the theses for the investment is that the ongoing share buyback program helps to shrink the company’s share count, making it easier to be targeted for M&A activities. In early December, the company received private equity interest for a potential buyout, prompting the sell-side to raise their target prices.
The returns are based on Class F1 units, net return.