SRHR holds distribution growth-oriented REITs, coupled with a covered-call writing strategy on the individual REITs. Its portfolio management team employs a fundamental, bottom-up, value-driven stock selection process.
SRHR’s investment objective is to provide total return. Under normal circumstances, the fund invests at least 80% of its net assets in publicly traded real estate investment trusts (REITs). In addition, SRHR strategically implements an option strategy consisting of writing (selling) U.S. exchange-traded covered call options on the REITs in its portfolio.
Paralel Advisors serves as the fund’s investment adviser. Fund sub-adviser Rocky Mountain Advisers manages the strategy. Vident Advisory serves as SRHR’s trading sub-adviser.
SRHR carries an expense ratio of 0.75%.
The SRH Funds are designed and managed under the thesis of investing in good businesses at attractive valuations for the long run. The thesis is agnostic about the type of investment vehicle used and whether the portfolio is actively or passively managed.
An Opportunity Within the REIT Space
Investment firms are seeing an investment opportunity within REITs. In addition to SRHR, Kingsbarn Capital Management today launched the actively managed Kingsbarn Dividend Opportunity ETF (DVDN ). DVDN targets equities issued by residential and commercial mortgage REITs and business development companies.
Bank of America strategist Michael Hartnett called REITs “fascinating to watch.” He said that, if a recession is averted, long positions in REITs could pay off for investors.
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