In order to deliver long-term, superior risk-adjusted returns, West End employs several specific real estate strategies with the following core philosophies in mind.
- Preservation of Capital Our primary goal of maintaining and growing our investors’ long-term wealth necessitates a supreme focus on capital preservation. Using a baseball analogy, we would much rather consistently “hit doubles,” allowing the positive returns to compound over time, than to “swing for the fences” by attempting to generate outsized returns through risky investments that are more susceptible to losses. In doing so, we aim to participate in the upside when markets perform well, but more importantly, successfully weather any downturns as the real estate cycle naturally ebbs and flows.
- Focus on Current YieldWe are firm believers in a “value approach” to investing, as conceived by Benjamin Graham and later popularized by notable investors such as Warren Buffett (Berkshire Hathaway), Howard Marks (Oaktree), and Seth Klarman (Baupost). As such, we prefer to generate returns by buying below replacement cost, collecting stable recurring cash flow, and directly adding value at the property level, rather than relying on market growth forecasts, which may never materialize (but may provide additional upside).
- Independent ThinkingWe are wary of “group think” and prefer to make investments in areas that are out-of-favor, with less competition, and that offer better pricing. Though changes in cycles and investor preferences are impossible to predict, this approach oftentimes results in a more favorable cost basis, with greater upside potential, and added downside protection. Our expertise across several different product types and geographic regions allows us to take advantage of current market conditions, which are continually shifting and presenting new opportunities.
- Honesty, Integrity, TransparencyAbove all else, we strive to build and maintain good working relationships with our investors, lenders, and third party partners. These invaluable long-term, mutually beneficial relationships are built upon three intangible qualities: honesty, integrity, and transparency. These three qualities serve as the foundation upon which our firm operates.