- Opportunities where there is a disconnect between the inherent risk in an investment compared to the potential realizable returns.
- Arises when there is a higher perceived amount of risk due to lack of information or need for speed of execution – allowing potential returns to largely exceed the investment’s inherent risk. Put simply, Morningside Capital seeks to acquire risk as efficiently and cheaply as possible.
Since its inception in 2014, Morningside Capital has consistently outperformed NCREIF by identifying and investing in specific niches where the market has mispriced the intrinsic value of the investment.
What is a Special Situation?
Most commonly found in:
- Investments that range between $5 to 25MM.
- Market segments that do not receive the focus / capital allocation from institutional investors.
- Any economic climate / real estate market, but the investment strategy adapts to market changes.