The depth and severity of the real estate markets downfall has not dissuaded investors from attempting to capitalize on a rebound. Both specialists and non-specialists have correctly ascertained that forced deleveraging has afforded a once-in-a-generation opportunity to pick up bargain priced real estate-related assets.

However, there is a wide disconnect between the areas of greatest opportunity and those areas that are attracting the bulk of the investment capital. Widely followed proxies for the residential real estate markets in the US have already experienced sharp rebounds even as fundamental indicators such as loan delinquencies, the fiscal position of state and local governments, and the resale values of physical real estate have remained stagnant or even deteriorated. Many segments of the markets have gone from pricing in unrealistically pessimistic scenarios to pricing in optimistic ones as investors cluster into a few areas. As a result, investments that formerly offered outsized returns across a range of scenarios now come with a much more balanced risk/reward while certain, less well-known or more labor intensive opportunities with better potential risk-adjusted returns remain available to enterprising market participants.

Transcendent Investments differentiated approach steps into this breach. Transcendent Investments focuses on untapped opportunities in less efficiently priced corners of the market where the potential for substantial risk-adjusted returns persists whether in debt, equity, lien structured products or physical assets themselves. Transcendent Investments does not simply look to purchase opportunities at firesale prices and hold it for recovery. Instead, we craft investment positions that take advantage of well-defined opportunities with limited downside risk within market niches that play to the strengths of our management team. Additionally, the diverse skill set and industry know-how of our fund manager allows Transcendent Investments to extract returns from numerous facets of a given investment.