$5.6B Hedge Fund Sells Real Estate Investment TrustsThe $5.6 billion hedge-fund unit within Switzerland’s biggest bank UBS O’Connor LLC, had sold off more than $900 million of shares in American real estate investment trusts during the second quarter 2014 after the companies delivered some of the highest stock-market returns in the 2013.
O’Connor cut its holdings by more than $900 million, selling almost every type of REIT, including those backed by apartments, offices, mortgage bonds, campgrounds, cell-phone towers and hotels, according to a filing last week with the U.S. Securities and Exchange Commission. The biggest reductions were in Mid-America Apartment Communities Inc., AvalonBay Communities Inc. and Equity Lifestyle Properties Inc.
The selling took place from the firm’s $4.8 billion global multi-strategy fund as the firm switched into other industries, according to a person with knowledge of the matter, who asked not to be identified because the information is private. O’Connor increased investments in information technology and consumer staples, including Coca-Cola Enterprises Inc. and Mondelez International Inc., the filing shows.Source: Bloomberg