AFIRE Podcast #35: Is Portfolio Diversification About Buildings Or Location?

(Featuring Brian Biggs, CFA, Research Director, Grosvenor Americas, and Madeleine Roberts, Research Analyst, Grosvenor Americas)

Portfolio diversification is one of the most fundamental concepts in investing. Diversification is a useful risk management tool employed to construct a portfolio in such a way that an investor is not overly exposed to any asset or risk.

How can real estate investors think about constructing a diversified portfolio in an efficient and cost-effective manner? Investors do not necessarily need to spread themselves thin in order to thrive in portfolio diversification.

In this podcast, Brian Biggs, CFA, Research Director of Grosvenor Americas, and Madeleine Roberts, Research Analyst of Grosvenor Americas, talk about how the city lens is a powerful tool for diversified portfolio construction. By selecting a relatively small set of cities based on their long-run total returns relationships with one another, investors can build a portfolio that offers relative stability in uncertain times.

This podcast is based on the article “City vs. Property” from Summit Journal (Fall 2020). Read the full article here.

FEATURING

Brian Biggs, CFA is the Research Director for Grosvenor Americas. He is responsible for helping set investment strategy, analyzing transactions, and thought leadership across their three deal functions. He also works collaboratively with Grosvenor’s global research team on thematic, cross-company projects. Brian joined Grosvenor in 2014, starting with the Group Holding Company in London before moving to Grosvenor Americas in 2018.

Prior to joining Grosvenor, Brian was a financial economist with Bloomberg and Europe Economics. Brian holds an MPhil from St. John’s College, University of Cambridge and a BA from Bradley University. He is also a CFA Charterholder.

Madeleine Roberts is the Research Analyst for Grosvenor Americas, providing economic and market analysis across Grosvenor deal functions and contributing to the organization’s thought leadership work.

Grosvenor Americas uses specialist property expertise and local knowledge of North American cities to craft thoughtfully designed properties that contribute to the vibrancy of the communities. Grosvenor’s “Living Cities” approach aligns commercial returns with social responsibility.

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The publisher of AFIRE Podcasts is not engaged in providing tax, accounting, or legal advice through this publication. No content published in the AFIRE Podcast is to be construed as a recommendation to buy or sell any asset. Some information included in the AFIRE Podcast has been obtained from third-party sources considered to be reliable, though the publisher is not responsible for guaranteeing the accuracy of third-party information. The opinions expressed in the AFIRE Podcast are those of its respective contributors and sources and do not necessarily reflect those of the publisher.

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