Smaller funds thrive on asset selection, larger funds and investors may benefit more from a focus on strategy

The ongoing debate on whether to prioritize asset selection or strategy in real estate investment lacks a conclusive answer. Existing real estate research hasn’t addressed this question. However, Xiong et al. (2010) researched a similar inquiry for mutual equity funds, benefiting from the widely available performance data in that domain. Translating their approach to real estate faces challenges due to limited public data. Yet, with
help of INREV, comprehensive data on European private real estate funds is now accessible.

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