Investment Strategy

Forum Securities seeks to generate alpha from a three-pronged approach to both Return and Risk: Real Estate, Company and Security, each with its own set of operating variables.  By combining our analysis at these three levels we generate a total return expectation for each security in the investable universe.  We separately project risk for each company using a different but overlapping set of forecast variables. The team monitors 13 variables in our proprietary risk model on a real-time basis designed to ensure that our expected return forecasts accurately reflect the risks inherent in each security.

Forum Securities’ portfolio construction process is driven by proprietary company-specific research.  For each company under consideration for inclusion in the portfolio, we determine a return expected to be realized over a medium-term time horizon. Included in this analysis are all sources of value creation relevant to real estate investment: Real Estate Value, Company Value, Security Value, and Expected Return.

Risk analysis and monitoring is inherent in Forum Securities’ investment process.  As with our methodology to develop a total return expectation, we conduct a similar three-pronged analysis at the real estate, company, and security level.  We conduct this analysis for all securities in our investment universe to develop a risk score.  The risk score is then viewed in relation to the securities total return expectation to help us determine which securities are candidates for the portfolio.