Why have wealthy investors surged as the leading buy-side participants in this market segment?

Recent Nareit research looked at actively-managed real estate funds, REIT balance sheets and the state of ESG among publicly-traded real estate investors.

The aim is to exploit the tax efficiency of the ETF wrapper, which means funds rarely incur capital gains tax, instead transferring the burden to investors when they exit.

The co-founder and former chief investment officer of Pacific Investment Management Co. has been growing increasingly vocal in recommending the strategy, which involves betting on the outcome of corporate takeovers. 

Co-CIO Andrew Krei likes higher quality fixed income, venture capital and private equity, while avoiding AI.

CIO Donald Calcagni likes non-U.S. equities, value stocks and private credit.

CIO Jack Ablin likes private credit, U.S. large caps and public and private equity.