Cohen & Steers, IDR Launch Real Estate Strategy Blending Listed and Private Markets
Cohen & Steers, Inc. and IDR Investment Management, LLC have partnered to introduce a real estate investment strategy that dynamically allocates between listed real estate securities and core private real estate within a single portfolio. The strategy aims to exploit valuation discrepancies between listed and private real estate markets through tactical adjustments guided by both firms.
Designed to mirror the NCREIF Fund Index — Open End Diversified Core Equity, the strategy allows for flexible overweighting or underweighting of listed or private real estate based on market conditions.
“There is a lead-lag dynamic in real estate investing in which listed performance leads private in both downturns and recoveries, creating pricing differential opportunities for investors,” said Jon Cheigh, President and CIO of Cohen & Steers. “By blending listed and private real estate in a single strategy, we can help investors capitalize on valuation mismatches between listed and private, delivering the potential for higher total returns and better liquidity.”
“We believe this strategy presents investors with an innovative and holistic solution for managing their listed and private core real estate allocations,” added Garrett Zdolshek, CIO of IDR.
The approach seeks to optimize real estate portfolios by enhancing risk-adjusted returns, improving liquidity compared to traditional private real estate investments, and providing broader exposure to sectors and property types.
