Strategies:
Equity Securities
In addition to investing directly in real property, Westport uses the same analytical and valuation skills to assess financial instruments whose value is supported by real estate. Whether distressed or performing, there are many situations where the return criteria for the Funds can be achieved by investing in a fixed income or equity security. At any given point in time, the Westport portfolio may contain various types of securities primarily focused on value oriented fixed income investments, with a secondary focus on equities that the team feels are substantially undervalued.
Fixed Income
The team’s fixed income strategy is focused on the acquisition of real estate related bank debt, corporate bonds, municipal bonds, and mortgage backed securities (residential and commercial) that can be purchased at a significant discount to par with the potential returns that meet the investment objectives of the funds. Prior to purchase, these investments are carefully modeled to generate risk profiles predicting best and worst case scenarios. The profiles are subsequently vetted by Westport’s investment committee. When evaluating fixed income and debt instruments, the team emphasizes seniority in the capital structure and payment priority, coupled with current cash flow. An investment is made if the particular security offers an appropriate risk/reward ratio which meets the Funds’ absolute return requirements.