INVESTMENT STRATEGY
Newlin's investment approach emphasizes investing in funds sponsored by small, focused companies who acquire assets in the local markets they know best. Newlin believes the common denominator among these companies is their ability to create value in ways that are not purely dependent on the market cycle or commodity prices. These companies will typically possess specialized knowledge or capabilities that could lead to a sustainable competitive advantage in their markets and generate attractive investment opportunities. Newlin believes that strong operating skills and local knowledge are critical to success.
Newlin's investment strategies are tailored to reflect opportunities in today's real estate, energy and timber markets. This approach provides investors with our "best ideas" in each asset classes. As described below, Newlin's strategies have a decidedly "value added" bias that seeks to exploit inefficiency or complexity.
Real Estate
Combined Value-Added / Specialized Niche Strategy. Newlin targets "value-added" managers that seek to enhance under-managed properties in supply constrained markets. In addition, Newlin invests with managers employing moderately higher-risk niche strategies to complement the value-added portfolio. In all cases, Newlin seeks to identify managers that operate in limited geographic areas and utilize sector-focused strategies since these "local sharpshooters" are adept at value creation in their markets. Newlin believes this portfolio construction matches well with where opportunities are in today's real estate market.
Energy
Direct Commodity Exposure. Newlin favors an approach that exposes capital directly to investments where the primary underlying risk is commodity price. Investment strategies focus on the acquisition of mineral interests and low risk producing reserves where value can be added through field enhancements and lower operating costs. Newlin believes this approach maximizes non-correlative portfolio benefits and potential inflation hedging to conventional equity and fixed income portfolios.
Timber
Direct Timber Exposure. Newlin targets domestic hardwood and softwood investments as its primary investment strategy with perhaps a modest exposure to international opportunities. Our principal investment bias is toward sawtimber rather than pulpwood, as pulpwood tends to be a low value-added commodity product. Since timber is a "growing asset" that increases in value independent of capital market dynamics, Newlin believes that a timber allocation provides non-correlative benefits and inflation hedging to conventional equity and fixed income portfolios.
LEGAL DISCLAIMER
The information provided on this page is not intended to recommend any investment described herein and is not an offer or sale of any security or investment product or investment advice. Newlin provides investment advisory services to privately offered Newlin funds. Newlin does not solicit or make its services available to the public.
