| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 5.88% | 1% | 1% |
Easterly Global Real Estate Fund generated a 1.00% net return in Q1 2026, outperforming its benchmark by 37 basis points despite market volatility from rising oil prices and bond yields. The fund views the global real estate market as transitioning from stabilization to increasing differentiation, favoring higher-quality, lower-leverage companies with visible growth and capital access. Interest rates are no longer a headwind, with stability in the 4-4.5% range giving landlords confidence to pass through rents. Low construction activity due to higher costs and labor shortages provides pricing power to existing asset owners. The fund maintains a constructive outlook, preferring property types with supply-demand imbalances including data centers, healthcare, and industrial/logistics, while remaining cautious on office, self-storage, and lodging. Top contributors included Hong Kong Land, NETSTREIT, and Equinix, while Unite Group, Stockland, and Goodman Group detracted. The fund's high-conviction, benchmark-agnostic approach focuses on identifying the 50 highest-quality companies from their 500+ company investable universe.
The fund focuses on higher-quality, lower-leverage real estate companies with durable structural demand, limited near-term supply, embedded earnings growth, and balance sheet flexibility, particularly in data centers, seniors housing, necessity-based retail, select industrial, and defensive net lease business models.
Despite elevated macroeconomic uncertainty and geopolitical stress, the outlook for the global real estate market is increasingly constructive. Real estate fundamentals and earnings growth in most property sectors are healthy and improving, aided by low supply and high construction costs. The fund believes market conditions of higher volatility play to their strength through domain expertise and nimble positioning.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| May 4 2026 | 2026 Q1 | EQIX, GMG.AX, HKL.HK, NTST, SGP.AX, UTG.L | Data centers, global, interest rates, Property, real estate, REITs |
HKL.L NTST EQIX UTG.L SGP.AX |
Easterly Global Real Estate Fund outperformed in Q1 2026 as interest rate stability removed a key headwind for REITs. The fund favors higher-quality companies in data centers, healthcare, and industrial properties benefiting from supply constraints and structural demand drivers. Market differentiation is increasing, rewarding operational resilience and balance sheet flexibility over broad sector exposure. |
| Feb 4 2026 | 2025 Q4 | 0012.HK, AMT, IRM, PLD, PW.L, UTG.L | Construction, fundamentals, global, interest rates, Property, real estate, REITs, supply | - | Global real estate fundamentals are improving with low supply and high construction costs conveying pricing power to landlords. Interest rate stabilization removes a major REIT headwind. The fund favors property types with supply-demand imbalances including data centers, healthcare, and industrial/logistics while avoiding weakening areas like self-storage and office. |
| Oct 22 2025 | 2025 Q3 | ABNB, ASML, AVGO, BSX, BX, FICO, INTU, ISRG, LLY, MSCI, NFLX, NOW, NVDA, SHOP, SNPS, SPGI, SPOT, TDG, V, VRTX | AI, growth, healthcare, large cap, semiconductors, software, technology | - | Edgewood's concentrated growth strategy underperformed in Q3 due to stock-specific issues, not fundamental deterioration. The firm maintains strong conviction in its AI-heavy portfolio, actively adding to positions during dislocations. Management's personal capital investment in September signals confidence in current holdings and long-term strategy execution. |
| Jul 30 2025 | 2025 Q2 | DPLM.L, HARV.HE, LOTB.BR, POOL | Compounding, Europe, growth, Quality, Roiic | - | European quality compounder delivered +10.08% YTD despite FX drag, focusing on businesses with >20% incremental returns on invested capital. Portfolio companies grew EBITA per share +14.8% through high-return reinvestment rather than leverage. Manager maintains fully invested positioning in sustainable quality compounders positioned for double-digit long-term returns despite tariff and FX uncertainties. |
| May 7 2025 | 2025 Q1 | - | compounders, growth, long-term, Quality, volatility | - | Quality-focused manager delivered 4.21% in volatile Q1 2025, with portfolio companies showing 15.0% EBITA growth in 2024. Despite tariff uncertainty and market noise, maintaining business-as-usual approach by intensifying research on existing high-quality compounders rather than chasing new names. Focus remains on company longevity and avoiding emotional market reactions. |
| Mar 16 2025 | 2024 Q4 | - | - | - | |
| Oct 24 2024 | 2024 Q3 | - | - | - | |
| Aug 9 2024 | 2024 Q2 | - | - | - | |
| Feb 29 2024 | 2023 Q4 | AAPL, AMD, AMZN, ASML, GOOGL, INPST, MELI, NFLX, NIO, NU, RBRK, SE, TXN, UBER, V | E-Commerce, Fintech, growth, Logistics, Platforms, software, technology |
INPST ARGX BB|DAVA|DDOG|GLOB|ILMN|LOAR|MELI|NET|NU|NVDA|TSM RBRK ^VIX |
Strong Q3 performance driven by platform businesses with structural advantages. Added to InPost, Mercado Libre, and Rubrik during selloffs. Portfolio up 23.4% YTD versus 13.7% for S&P 500. Focus on profitable, growing companies with operating leverage while maintaining moderate risk. Cautiously optimistic outlook with plans to increase cash and reduce holdings to target allocation. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
Commercial Real EstateGlobal real estate stocks posted modest gains in Q1 2026 despite volatility from oil price increases and rising bond yields. The fund views the market as transitioning from stabilization to increasing differentiation, favoring higher-quality, lower-leverage companies with visible internal growth and capital access. Public-to-private valuation gaps remain wide enough to support M&A activity. |
REITs Property Valuation M&A Fundamentals |
Data CentersData centers are highlighted as a preferred property type benefiting from durable secular drivers including digital infrastructure demand and AI-related infrastructure needs. Equinix outperformed during the quarter driven by better-than-expected 2026 revenue guidance and strong bookings for high-quality data center capacity. |
Digital Infrastructure AI Cloud Capacity Growth | |
RatesInterest rates are no longer viewed as a headwind and are now considered a tailwind. With rates stabilizing in the 4-4.5% range on the 10-year Treasury, REITs have shed a major headwind, giving landlords greater confidence to pass through rents and maintain occupancy. Historical analysis shows REITs have delivered strong returns following Fed tightening cycles. |
Treasury Fed Tightening Landlords Occupancy | |
LogisticsIndustrial/logistics is mentioned as a preferred property type benefiting from post-pandemic recovery trends and supply-demand imbalances that favor landlords. However, the overweight to Industrial detracted from portfolio returns in Q1 2026. |
Industrial Supply Chain Recovery Warehousing | |
| 2025 Q4 |
AIAI developments from major companies are causing rapid market changes and stock price declines for quality businesses. The manager sees AI creating disruption across white collar work including finance, law, software development, and insurance. Software companies face particular headwinds from fewer seats, lower pricing power, and competition from AI-first upstarts. |
Artificial Intelligence Software Disruption White Collar Automation |
SoftwareSoftware companies are experiencing significant declines as the market reassesses AI impacts. The manager notes three vectors affecting valuations: fewer seats due to efficiency gains, lower pricing power from AI competition, and reduced new customer bookings. However, believes some software that cannot be easily replaced may present opportunities. |
SaaS Enterprise Software Pricing Power Competition Valuation | |
GLP1Manager sold Novo Nordisk after brief ownership due to competitive disadvantage versus Eli Lilly. While NVO was attractively valued and first to market with oral GLP-1, LLY has superior product and likely sustainable advantage even when bringing similar oral option to market. |
Diabetes Pharmaceuticals Competition Oral Delivery | |
Home ImprovementFloor & Decor represents a compelling long-term opportunity following the Home Depot disruption model. The company is taking market share with higher inventory selection and lower prices. Current margins are depressed but should scale toward low-to-mid teens as store base builds out and sales per store recover. |
Retail Flooring Market Share Margins Store Expansion | |
| 2025 Q3 |
AIEdgewood maintains significant exposure to AI infrastructure buildout representing 28% of portfolio. The firm has developed a comprehensive AI framework covering infrastructure enablement, proprietary data applications, and productivity enhancements. Key holdings include NVIDIA's accelerating product releases, ASML's lithography enabling AI chip manufacturing, and ServiceNow targeting $1B in AI annual contract value by 2026. |
Infrastructure Semiconductors Software Data Centers Computing |
SemiconductorsPortfolio includes major semiconductor exposure through NVIDIA, ASML, Broadcom, and Synopsys. ASML maintains ~90% market share in photolithography machines essential for chip manufacturing. NVIDIA continues exponential performance improvements per watt, while Broadcom leads hyperscale custom chip design and Synopsys benefits from AI-generated silicon design. |
Chip Design Manufacturing Equipment EDA Foundries | |
CloudServiceNow is positioned at the forefront of agentic AI revolution through NVIDIA partnership. The company targets consumption-based monetization models to drive robust revenue growth. Intuit launched QuickBooks AI agents showing 80% repeat-user engagement, while Shopify enables agentic e-commerce through OpenAI integration. |
SaaS Enterprise Software Automation Platforms Integration | |
| 2025 Q2 |
QualityThe manager emphasizes sustainable quality compounding with focus on companies achieving high returns on incremental invested capital (>20/25%). They stress the importance of measuring free cash flow performance, proper capital allocation management, and understanding the ROIIC framework for value creation. |
ROIIC Compounding Cash Flow Capital Allocation Value Creation |
| 2025 Q1 |
QualityThe manager focuses on high-quality compounders that delivered 15.0% EBITA per share growth in 2024. They emphasize companies that show resilience and continue thriving through volatile periods, with a focus on business longevity rather than short-term market movements. |
Compounders EBITA Resilience Longevity Quality Growth |
| 2023 Q4 |
E-commercePortfolio includes major e-commerce platforms like Mercado Libre expanding across Latin America with new wholesale platform and digital health services. Manager emphasizes platform businesses with structural advantages as cornerstone of investment philosophy. |
Platforms Marketplaces Digital Latin America Fintech |
FintechMercado Pago hits 1M POS terminals in Mexico, doubling since September 2024, driving financial inclusion in a country where 40% remain unbanked. Acquired Brazilian firm Nikos to structure and distribute fixed-income securities and grow assets under management. |
Payments Financial Inclusion Digital Banking Mexico Brazil | |
CloudRubrik represents high-growth software business with accelerating revenue growth and positive free cash flow. Manager views it as one of the most attractive high-growth software businesses despite premium valuation, with margin expansion ahead. |
Software Data Protection SaaS Growth Margins | |
LogisticsInPost expanding UK presence with 536 Aldi stores featuring parcel lockers and UK Post Office trial across hundreds of branches. Potential to tap into full 15,000-branch network represents game changer for density and market penetration. |
Parcel Lockers Last Mile UK Expansion Density Infrastructure |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| May 4, 2026 | Fund Letters | Easterly - Global Real Estate Fund | HKL.L | Hong Kong Land Holdings | Other | Real Estate Operating Companies | Bull | New York Stock Exchange | Asia, asset sales, capital allocation, Hong Kong, Office, Real Estate, retail, share repurchase, Singapore, Strategic Transformation | Login |
| May 4, 2026 | Fund Letters | Easterly - Global Real Estate Fund | NTST | NETSTREIT Corp | REIT - Retail | Retail REITs | Bull | New York Stock Exchange | acquisition, defensive, income-oriented, Long Duration, Necessity Retail, Net Lease, REIT, Stable cash flows | Login |
| May 4, 2026 | Fund Letters | Easterly - Global Real Estate Fund | EQIX | Equinix Inc | REIT - Specialty | Specialized REITs | Bull | NASDAQ | AI infrastructure, cloud, data center, digital infrastructure, enterprise, Global Platform, Interconnection, REIT | Login |
| May 4, 2026 | Fund Letters | Easterly - Global Real Estate Fund | UTG.L | Unite Group PLC | REIT - Diversified | Residential REITs | Bear | New York Stock Exchange | affordability, development pipeline, low leverage, market leader, Residential, student housing, UK, University | Login |
| May 4, 2026 | Fund Letters | Easterly - Global Real Estate Fund | SGP.AX | Stockland | REIT - Diversified | Real Estate Operating Companies | Bear | New York Stock Exchange | Australia, Diversified Real Estate, housing market, interest rate sensitivity, Logistics, Master-Planned Communities, Residential Development, retail | Login |
| Oct 1, 2025 | Fund Letters | Easterly - Global Real Estate Fund | INPST | InPost | Industrials | Air Freight & Logistics | Bull | Warsaw Stock Exchange | Automated Parcel Machines, e-commerce, Last-mile Delivery, Logistics, market share, Network Density, Parcel Lockers, strategic investment, UK Expansion | Login |
| Oct 1, 2025 | Fund Letters | Easterly - Global Real Estate Fund | ARGX BB|DAVA|DDOG|GLOB|ILMN|LOAR|MELI|NET|NU|NVDA|TSM | Mercado Libre | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | B2B wholesale, digital health, digital payments, E-commerce Platform, Financial Inclusion, Fintech, Latin America, market dominance, Political Resilience, POS Terminals | Login |
| Oct 1, 2025 | Fund Letters | Easterly - Global Real Estate Fund | RBRK | Rubrik | Information Technology | Systems Software | Bull | NYSE | Cloud data management, Data Protection, Enterprise software, Free Cash Flow, growth inflection, High Growth, SaaS, Software, Subscription ARR, Valuation reset | Login |
| Oct 1, 2025 | Fund Letters | Easterly - Global Real Estate Fund | ^VIX | Visa | Information Technology | Data Processing & Outsourced Services | Bull | NYSE | antitrust, defensive, financial services, forward earnings, low risk, market outperformance, Monopolization, Payments, Regulatory risk | Login |
| TICKER | COMMENTARY |
|---|---|
| HKL.HK | Hong Kong Land is a leading owner of office and retail assets primarily located in Hong Kong and Singapore, along with residential development activities in China and select ASEAN markets. Shares advanced during the quarter, supported by continued execution of its Strategic Vision 2035 plan. Key developments included announced asset sales, such as the Singapore residential business (MCL) and a partial interest in Marina Bay Financial Centre, alongside the formation of a Singapore-focused private investment vehicle. The company also expanded its share repurchase program, reinforcing capital return and balance sheet discipline. |
| NTST | NETSTREIT is a net lease REIT focused on high-quality, necessity-based retail tenants with long-duration cash flows. Shares contributed positively as investors favored defensive, income-oriented names with improving visibility on external growth. Steady acquisition activity, disciplined underwriting, and stable fundamentals, combined with a modestly improving cost of capital, supported sentiment and drove incremental upside. |
| EQIX | Equinix is a global data center REIT providing interconnection and digital infrastructure critical to cloud and enterprise customers. Shares outperformed during the quarter, driven by better-than-expected 2026 revenue guidance, strong bookings, and continued demand for high-quality data center capacity, particularly tied to AI-related infrastructure needs. |
| UTG.L | Unite Group PLC is the largest listed owner/developer of student housing in the UK. The company employs a conservative, low-leverage financing strategy required for its large development pipeline. Shares declined following weaker-than-expected leasing updates, reflecting softer demand from both university on-campus agreements and direct-lease students. The update raised concerns around affordability and leasing visibility, particularly following prior guidance misses. While near-term sentiment weakened, we continue to view the company's asset base, supply-demand dynamics, and balance sheet strength as supportive over the longer term. |
| SGP.AX | Stockland is an Australian-listed diversified real estate owner and developer with exposure to residential, retail, logistics, and master-planned communities. Shares underperformed during the quarter as rising interest rates and mortgage costs in Australia weighed on sentiment toward residential-exposed REITs. The move was exacerbated by broader increases in global rates and risk premiums. Despite near-term pressure on residential volumes, we continue to see value in Stockland's diversified platform and balance sheet strength. |
| GMG.AX | Goodman Group is an Australian-listed owner, developer, and manager of global industrial properties, with a significant data center development pipeline. A majority of its earnings are derived from its asset management platform. Shares declined during the quarter amid broader weakness in Australian REITs, as rising interest rates and risk premiums weighed on the sector. In addition, the company maintained its earnings growth outlook despite market expectations for an upward revision following its recently announced European joint venture, which contributed to pressure on its share price. We continue to see opportunity in Goodman's industrial platform and data center pipeline, increasingly supported by joint venture capital. |
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