Capital Growth Strategy

Capital Growth Strategy

An investment philosophy that aims to maximize the return on a portfolio over the long-term. Investors utilizing the capital growth strategy often have approximately two thirds of their portfolios in equities, with the rest in fixed-income investments and cash. This third of the portfolio is designed to provide a minimum hedge against the risk of investing in equities. However, some practitioners of the capital growth strategy invest exclusively in equities.
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In particular, private equity firms have capitalized on this opportune time to invest in hotels, adopting a combined income and capital growth strategy and public REITs continue to be active investors due to their strong earnings multiples.
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