This Case is about FINANCIAL ANALYSIS, FINANCIAL MANAGEMENT, RISK MANAGEMENT
PUBLICATION DATE: January 31, 2014 PRODUCT #: KEL824-HCB-ENG
In the summer of 2013, Whitney DeSoto had just been hired as managing director for real assets at the Overton Pension Fund (OPF). Her job was to provide recommendations to the board of trustees to introduce property into the fund’s portfolio, which to date had been invested only in bonds and stocks.
Joining her understanding of contemporary portfolio theory with her institutional expertise in real estate, DeSoto needed to make a decision as to what fraction of the fund should be invested in real assets. She later on encountered the job of evaluating whether to put money into private or public property. If she believed private real estate went in the portfolio, she had have to identify the particular investments, the most effective vehicle, and finally the most effective investment strategy to suggest.