Navigate Volatility. Unlock Opportunity. Active Fixed Income

A company’s value creation is based on how much its return on invested capital exceeds its cost of capital, the amount it can invest, and how long it can sustain the spread. This report is about the “how long” part, or the competitive advantage period (CAP). We give a history of valuation and strategy, review how analysts value stocks, and argue the life cycle stage informs the valuation approach. We offer guidance for modeling the terminal value and the implied CAP and end with a case study.

In-depth review of fundamentals and valuations across emerging markets debt.

The U.S. multifamily real estate sector is entering an upcycle supported by reduced levels of new supply, durable demand driven by housing affordability constraints, and reset valuations well below replacement cost. While near term fundamentals remain uneven across markets, the outlook is increasingly favorable for disciplined investors with a medium to long term investment horizon.