Investors sink $2m into fund.RiverOak Investment Corp., Inc. announced that the firm will invest $2 million in Redbrick red·brick adj. Of, relating to, or being the British universities other than Oxford and Cambridge. [So-called because many of the buildings of such universities were built of red bricks. Partners Fund 2, a fund developed by the Washington investment management firm Redbrick Partners LP. Creating further diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. in RiverOak's investment strategy, its commitment to Redbrick will engage RiverOak in the unique niche of single family, rental home portfolio ownership. Specifically, RiverOak's investment will support Redbrick's acquisition of 150 or more houses valued at approximately $70,000 that rent for approximately $1,000 per month in a handful of stable working class neighborhoods in New Jersey and Connecticut. Funding for the Redbrick commitment will be $1 million each from RiverOak Fund II and RiverOak Fund III, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. George Yerrall, managing director of RiverOak. The fund-to-fund investment is also a departure from RiverOak's years-long strategy of investing only in properties. Yerrall said, "This is an investment opportunity that requires an intense level of hands-on local market research and individual, personal inspection of each property. "This is congruent con·gru·ent adj. 1. Corresponding; congruous. 2. Mathematics a. Coinciding exactly when superimposed: congruent triangles. b. with our own philosophy of capitalizing on local market knowledge and experience, while choosing assets that institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. avoid. We are very impressed with Redbrick's proprietary econometric e·con·o·met·rics n. (used with a sing. verb) Application of mathematical and statistical techniques to economics in the study of problems, the analysis of data, and the development and testing of theories and models. research and forecasting activities which focus exclusively on single family housing." RiverOak will be an "unpromoted" investor, receiving a straight percentage return on its investment in Redbrick. Yerrall said, "We only make wholesale priced investments regardless of the investment vehicle." In April, 2004, RiverOak announced the formation and sponsorship of RiverOak Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Fund III. The diversified real estate fund will provide high net worth individuals (HNWIs) with access to professionally managed real estate investments and diversification from the equities market. RiverOak Realty Fund I, launched in 2000, has returned 91% of its investors' dollars and continues to own interest in four properties. Its projected rate of return is 19%. RiverOak Realty Fund If, which was launched in June 2002 and closed last June, is approximately 90% invested and is projecting returns of 17%. |
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