Fund for hedging real estate ownership risk using financial...

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Reexamination Certificate

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Reexamination Certificate

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07970684

ABSTRACT:
A method for creating an investment fund and selling shares in the fund to individual investors, each of whom has an investment ratio defined by a dollar amount of direct real estate investments held by the investor outside of the fund divided by a dollar amount of shares in the fund held by the individual investor. A target range of the investment ratio is selected for the fund. A target geographical region is selected where individual investors in the fund hold the direct real estate investments. A model composite portfolio is identified having an asset combination that includes: (i) direct real estate investment held by an individual investor in the target geographical region, and (ii) shares in the fund held by the individual investor. The asset combination in the model composite portfolio has an investment ratio that is within the target range. An optimal fund asset allocation is selected for the composite model portfolio in order to diversify and/or hedge risks associated with the direct real estate investment held by the model composite portfolio. Shares of the fund are sold to individual investors that hold direct real estate investments in the target geographic region and have investment ratios in the target range.

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