Vision Capital: Prospering in the Canadian Real Estate Market

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<h1>Vision Capital: Prospering in the Canadian Real Estate Market </h1><strong> Author: <a href='http://www.articleseen.com/profile_mesummits.aspx'>mesummits</a></strong><br /><p>Investors should not be seduced by yield, says Jeffrey Olin, President & Chief Executive Officer, Vision Capital. “Taking into account the underlying net asset value and regional trends is critical. We analyze from the top down in terms of asset sectors and regions, and from the bottom up in terms of the fundamentals of each company or REIT,” he adds. Vision Capital, which won the 2011 Number One Best New Fund in Canada award for the Vision Opportunity Fund Limited Partnership II, the 3rd consecutive year a Vision managed fund has ranked amongst the top five funds in Canada will be attending the upcoming marcus evans Private Wealth Management Summit Fall 2011 and Private Wealth Management Summit Spring 2012. Ahead of these Summits, Olin shares his insights into real estate investments and why private wealth managers should consider what Canada can offer. According to your website, Vision has outperformed in declining and volatile markets. How do you select real estate securities in such market conditions? Jeffrey Olin: We focus on publicly-traded equity and debt securities in the real estate market. Our principal valuation approach is to consider the net asset value of the underlying real estate, the value of the “bricks and sticks” as compared to the trading price of the securities in capital markets. We pay attention to the net asset value of tomorrow, not today, and the supply and demand fundamentals by region and property type. We look top down at asset sectors and regions, and bottom up at the fundamentals of each company. This includes the company’s strategies and the strength of its management team. What has been key to the fund’s success? Jeffrey Olin: We are not yield driven. The whole world has gone crazy chasing yield and there is a flaw in looking at yield as a valuation metric. I do not know of anyone who has valued any business in any industry based on how much cash flow is being paid out in a period of time, as opposed to how much cash flow is being earned. The chasing of yields creates distortions in valuation of comparable companies/REITs and we take advantage of that. We look for total return, whether it is generated by yield or capital gains does not matter. Why should private wealth managers pay more attention to Canada? Jeffrey Olin: Our focus on Canada is not simply because we live here. The Canadian story itself is pretty powerful. We had 12 years of federal budget surpluses before the recession. One year ago, employment levels surpassed pre-recession highs, and are moving higher. The macroeconomic environment is sound, the banking system is stable, our dollar is quite strong and we are recognized for our commodity strengths. We have the best supply and demand conditions in real estate markets that I have seen in 25 years. Canada has single-digit vacancy rates in every property type and region, compared to double-digits in the US. Canadian demand for housing is strong and housing prices are setting record highs, quite a remarkable contrast with the US. All these factors make Canada and its real estate markets very attractive. Any final thoughts? Jeffrey Olin: The asset management business is going to become more about risk management than money management. All returns are not created equal. We do not necessarily seek to be the highest performing fund, but we aim to be the highest risk-adjusted performing funds. Contact: Sarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, Summits Division Tel: + 357 22 849 313 Email: press@marcusevanscy.com About the Private Wealth Management Summit Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes presentations on unconventional investment strategies, Federal Tax Policy challenges, risk management strategies and the family office governance structure. For more information please send an email to info@marcusevanscy.com or visit the event website at www.privatewealthsummit.com/JOPR marcus evans group - investment sector portal Complementing our Summit format, the Investment Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations. Please note that the summit is a closed business event and the number of participants strictly limited. About Vision Capital The Vision Opportunity Funds focus primarily on the real estate sector, and invest predominantly in publicly-traded equity and debt securities, with a primary focus on Canada. The Funds: target investments that are expected to outperform on a medium term, risk adjusted basis, can make concentrated investments in the Manager’s best ideas, and utilize a long-short and active investing strategy. The Vision LP II recently received an award at the 2011 Canadian Hedge Fund of the Year Awards at KPMG as the best performing (new) fund. This is the third consecutive year that a Fund managed by Vision was recognized as amongst the top five in Canada. In addition, the Vision LP was the top performing fund in the Scotia Hedge Fund Index in 2010. For more information: www.visioncapital.com About marcus evans Summits marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-on-one business meetings. For more information, please visit www.marcusevans.com All rights reserved. The above content may be republished or reproduced – kindly inform us by sending an email to press@marcusevanscy.com </p><strong>About the Author:</strong><br /><a rel="nofollow" href="http://www.articleseen.com">www.www.www.linkedin.com/groups?mostPopular=&gid=3937929&trk=myg_ugrp_ovr.com</a> <a rel="nofollow" href="http://www.articleseen.com">www.www.youtube.com/user/MarcusEvansInvest .com</a> <a rel="nofollow" href="http://www.articleseen.com">www.www.twitter.com/meSummitsInvest .com</a> <a rel="nofollow" href="http://www.articleseen.com">www.www.slideshare.net/MarcusEvansInvest .com</a> <p> Article Source: <a href='http://www.articleseen.com/Article_Vision-Capital-Prospering-in-the-Canadian-Real-Estate-Market_112350.aspx'> http://www.articleseen.com/Article_Vision Capital: Prospering in the Canadian Real Estate Market _112350.aspx</a></p>

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Keywords : Private Wealth Management, Investment, Family Office Directors, Intergenerational Wealth Transfer, Equity Products, Tax Cons,

Category : Business : Business