Corsaires Real Estate Dividend, LLC 06/30/2019
Corsaires Real Estate Dividend, LLC (CRED) broke impound and admitted its first investors on 10/26/2010. CRED closed subscription on 05/20/2011 with a total of 41 members and net offering capitalization of $2,897,848.
Since inception, CRED has disbursed cash to unitholders totaling $1,571,403 or $6.35 per $10 unit.
CRED was originally scheduled to terminate on December 31, 2017, however, a majority vote extended the term for 36 months. Those members who voted against the extension each received a liquidating distribution in January 2018 equal to the Net Asset Value of their interest on December 31, 2017, less the Managing Member’s share of profits. On January 17, 2018, 85,494 units were redeemed for gross proceeds of $2,708,652.
As of 06/30/2019, CRED had net equity of $4,871,737 or $26.87/unit as contrasted against the original $10/unit offering price.
As of 05/31/2019, CRED had net equity of $4,651,158 or $25.66/unit as contrasted against the original $10/unit offering price.
Corsaires Real Estate Dividend, LLC Performance Relative to Benchmark from 10/26/2010 (Inception) – 06/30/2019
Important Notes and Disclosure
Corsaires Real Estate Dividend, LLC was formed in 2010 to invest in a diversified portfolio of publicly traded real estate equities and debt securities with the objective of maximizing total return through a combination of dividend income and capital gains. The fund is still actively managed. 2nd Market Capital Advisory Corporation (2MCAC) acts as the Investment Advisor to the fund.
Material Market and Economic Conditions. January 2019: Tax-loss selling’s calendar expired and the government re-opened on January 25, 2019. The combined effect caused our shares to rise significantly more than the broader markets. December 2018: Another Fed-Funds rate hike, unresolved US-Chinese trade, a partial government shutdown, and an exaggerated tax-loss selling season put extreme downward pressure on equity prices. All of these factors contributed to diminished liquidity and more significant share price declines in small cap/value issues; Corsaires Real Estate Dividend, LLC is completely focused on small cap/value issues, so our decline was significantly more precipitous.
Past performance does not guarantee future results. Investing in publicly held securities is speculative and involves risk, including the possible loss of principal. Historical returns should not be used as the primary basis for investment decisions. The performance described represents Corsaires Real Estate Dividend, LLC only and does not represent the performance of all advisory clients. Information regarding all funds formed 2000-present are included in this presentation. Although the statements of fact and data in this report have been obtained from sources believed to be reliable, 2nd Market Capital Advisory Corporation does not guarantee their accuracy and assumes no liability or responsibility for any omissions/errors.
Calculation Methodology: Returns are calculated by 2MC with data from our qualified custodians using the Modified Dietz method, a time-weighted measure of performance in which cash flows are weighted based on their timing. Dividends are paid, but not reinvested.
Expenses: Returns reflect the deduction of all administrative costs, 2MC management fees, and any transaction expenses. These returns do not reflect management’s equity participation payable upon liquidation.
Use of Leverage or Margin: Corsaires Real Estate Dividend, LLC, by prospectus, has the capacity to borrow capital to leverage investment (typically described as margin) thereby increasing both the possibility of gain and risk of loss. Margin limit: investment levels can range from 200% long to 100% cash, to 100% short positions, or any combination within those ranges, borrowing against net equity. As of 06/30/2019, Corsaires Real Estate Dividend LLC's cost of margin capital was 3.00%.
Benchmark Information: Corsaires Real Estate Dividend, LLC is compared to the MSCI US REIT Total Return Index (RMS) because the issues we research, target, and invest in are members (or aspire to be members) of the RMS or compete in the broad REIT sector. The MSCI US REIT Total Return Index (RMS) is a free float-adjusted market capitalization index that is comprised of equity REITs. The RMS represents about 99% of the US REIT universe and securities are classified in the Equity REITs Industry. However, it excludes Mortgage REITs and selected Specialized REITs. The RMS is calculated with dividends reinvested. Corsaires Real Estate Dividend, LLC is compared to the S&P 500 Total Return Index, because it is commonly used to represent the U.S. equity market. The S&P 500 Total Return Index is an index based on the market capitalization of 500 large companies. The S&P 500 Total Return Index is calculated with dividends reinvested. The indices shown are unmanaged. Investors cannot invest directly in the indices.
Conflicts of Interest: We routinely own and trade the same securities purchased or sold for advisory clients of 2MCAC. This circumstance is communicated to clients on an ongoing basis. As fiduciaries, we prioritize our clients' interests above those of our corporate and personal accounts to avoid conflict and adverse selection in trading these commonly held interests.
Investment advisory services offered through 2nd Market Capital Advisory Corporation, a Wisconsin registered investment advisor.
View disclosure information for 2nd Market Capital Advisory Corporation and our investment professionals by visiting the SEC Investment Advisor Public Disclosure website.
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