Our High Yield REIT Portfolio Designed To Outperform

2CHYP is a value REIT portfolio with a goal of beating the REIT index through a combination of stock selection, opportunistic trading, and fundamental diversification. We will open with why 2CHYP was formed and follow with the contents of the portfolio. Each stock is carefully selected, and the portfolio is curated to provide what we view as a superior mix of value, growth, and dividend yield.
Impetus for creation
With each update of our 2CHYP portfolio, I have talked about why we created this platform. Essentially, it boils down to dissatisfaction with the ever-growing trend of index-based investing. In previous updates, I laid out arguments for the advantages of active investing over passive investing including capture of mispricing, special situation analysis, and the tendency of indexes to overweight the overpriced stocks. These active advantages are real and growing. As the market share of passive investing increases, the benefits of active investing will be split between fewer active investors, meaning more outperformance potential is available for each.
I believe in these arguments as strongly as ever, but today, I want to discuss the emotional impetus for 2CHYP. Conventional wisdom says emotions and investing do not mix and one should only trade in a cold, calculated manner. True, but that does not mean emotions cannot be used as motivation to get up each day and grind out the research.
Ever since I was a kid, I have loved competition. It began with... Read more