Inlet invests in equity and debt securities of companies in the real estate industry or related industries or in companies which own significant real estate assets at the time of investment. Examples of such companies include, but are not limited to:
- Real estate development companies (including commercial/industrial developers and homebuilders)
- Real estate investment trusts (REITs)
- Hotel and hotel management companies
- Master limited partnerships that invest in interests in real estate
- Real estate brokerage companies and/or management companies
- Financial institutions that make or service mortgage loans
- Title insurance companies
- Lumber, paper, forest product, timber, mining and oil companies
- Companies with significant real estate holdings such as hotel companies, supermarkets, restaurant chains and retail chains; and Manufacturers or distributors of construction materials and/or building supplies.
Inlet’s focus on undervalued realty stocks using bottom-up, fundamental analysis and invests primarily in those companies that are expected to generate long-term capital appreciation as well as to current income. We expect that our portfolio will be concentrated in fewer stocks and in companies with high quality assets, strong financial positions and highly motivated and skilled management.
Our risk assessment is continuous and is analyzed through a combination of fundamental and top-down analysis. Portfolio diversification is a vital part of our risk management process. We actively manage our exposure by investing in different sectors, property types and segments of the capital structure.