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CBRE Clarion Global Real Estate Message Board

  • peabeetwo peabeetwo Feb 17, 2009 10:43 AM Flag


    Marty Cohen of Cohen and Steers gave great accolades to this fund. This suprises me because Cohen and Steers has several real estate funds in their house.

    A rule of investing: When one business admires his competitor, it is more prudent to invest in the competitor that is being admired.

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    • Yeah, but they are all in trouble and will start complementing each other in a hope of better profits for all. Ritt is a decent manager, but the leverage killed IGR. Now they have to buy it all back.

      The world is deflating and there is no "normalized" value to revert to since no one know what a fair market value is now that the leverage is gone. With the right discount this is indeed a "buy", maybe at todays level. But there is still so much risk to weight before pulling the trigger...

      • 1 Reply to harrythehorse111
      • It can certainly go down more, tracking its underlying assets. The discount is unlikely to widen further, and it will contract with an upward move in the underlying assets. That's what makes large discounts attractive. It's not that they guarantee the stock will go up (nothing does that), but that they provide a cushion. At this point, my guess is we'll see a stable discount if the market goes down, and narrowing discount if it goes up. Cushion.

        Morningstar's ratings are somewhat predictive of future results, *relative* to the category. Research supports that view. By definition, the average fund in any group has a rating of three stars.

    • This fund still carries a morningstar 4 rating, I also spoke to Clarion about the dividend and they claim it is safe unless the market totally falls off a cliff, which it might

      • 2 Replies to rickhesselink
      • Morningstar is a joke (as if you didn't know that). They perform no useful performance analysis. As far as I can tell, the company is still loosing money.

        Of course Clarion is going to say the dividend is safe. They promoted a "safe" dividend a year ago, too. Chances are it is reasonable here, and you are indeed buying the fund at close to a 25% discount (or where ever it closes at today). I guess the NAV--XIGRX--is around $4.00 or so. But real estate may still fall further given the deflating world economies. There is still no rush to buy this fund.

      • The fund looks like a bargain. I've followed closed-end funds for several years. Often, when a fund with marketable assets (not private equity) trades at a 25% discount with fees around 1%, it's a strong buy.

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