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Macro Economist
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I am a 13 year veteran of the buy-side, with over a decade of experience in Investment Management, at one time overseeing several billion dollars in hedge fund assets for institutional clients. Currently, I advise wealthy families on their investment portfolios as well as trade my own money. ... More
  • MREITs Set To Outperform - NLY, AGNC, TWO 0 comments
    Jul 13, 2013 7:51 PM | about stocks: NLY

    I'm not a big REIT guy and hence an Instablog post instead of a full article.

    But the MREITs are pretty easy to analyze since you know what managment's objectives and motivations are with respect to absolute profit maximization.

    Hence, looking at MREITs on a book-value mean reversion basis is as good as any in terms of determining cheapness vs. richness.

    On that front, there can be little doubt that current valuations on MREITs are the best we've seen in some time.

    Using the gold standard, Annaly (NYSE:NLY), as a reference point, we see the following:

    (click to enlarge)

    If history repeats itself, this could be a good time to buy the MREITs.

    Disclosure: I am long TWO.

    Stocks: NLY
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