KKR's McVey likes real estate, infrastructure

  • KKR's Henry McVey, who heads global macro and asset allocation, favors real estate in his report "The Uncomfortable Truth."
  • "Specifically, our call to arms is still to own Real Estate Equity via Opportunistic Real Estate for capital appreciation and B-piece Commercial Real Estate Credit to generate some outsized income," he writes.
  • Real estate is a "compelling diversifier," since provides cash flow and has a supply-demand cycle that's often separate from the broader economic environment, McVey says.
  • Among his points: Infrastructure remains one of KKR's larger overweight positions; suggests that investors consider "shortening portfolio duration and owning more collateralized assets linked to nominal GDP"; continues to advocate flexibility across mandates in Fixed Income, liquid credit in particular.
  • ETFs: NYSE:AWP, NYSE:UTF, NASDAQ:VNQI, NYSE:IGR, NYSEARCA:WPS, NYSEARCA:RWX, NYSE:IDE, NYSE:JRI, NYSEARCA:REET, NYSEARCA:RWO, NYSE:INF, NASDAQ:SRET, MFD, NASDAQ:IGF, IFGL, NYSE:MGU, DRW

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