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Fidelity Partners, Inc. seeks to earn above market rates of return on a consistent basis with below market risk to its investors. To implement this strategy, we are guided by the an investment strategy that focuses on:
Purchasing undervalued assets in inefficient markets.
Fidelity Partners seeks to acquire undervalued assets in markets that are
inefficient. In the early 1990s, the Resolution Trust Corporporation was an
inefficient seller of assets. At the same time there was a lack of real estate
liquidity and investment capital. These events led to opportunistic purchases
of undervalued assets in many classes: business loans, real estate, and tax
exempt bonds. Today, the issues involved in analyzing and restructuring real
estate debt and equity are often complex, leaving more efficient capital on
the sidelines. We search for markets that are difficult to access for most
investors, due to timing, complexity, type of asset class and expertise required.
These inefficient markets include purchases of assets with environmental problems,
properties in need of rehabilitation or repositioning, borrowers in bankruptcy
and defaulted bond issues.
Acquiring assets at a discount to their intrinsic
value.
Fidelity Partners seeks to capture the difference between the market price
of an asset and its intrinsic value. The development of the value analysis
may include implementing hands-on value added strategies, such as remediation,
rehabilitation and renovation. Fidelity has created a unique process to assist
sellers in the disposition of their assets, called The Alchemy Formula™. This process allows us to use our due diligence
process to identify intrinsic value and establish a plan to recognize that
value for our investors.
Utilizing event driven sales to create value for
sellers and investors.
Success at opportunistic purchasing results from creating value for both the
buyer and the seller in a transaction. We seek to acquire assets from motivated
sellers. Often the catalyst for the sale is an event that causes the seller
to offer an asset in a way that precludes efficient marketing. Event driven
sales force a seller to sell. These events may be bankruptcy, death, divorce,
liquidation of a partnership, litigation, tax sales, foreclosure or a default
on a loan, to name a few. For the motivated seller, certainty of a sale may
be more important than receiving the highest price possible.
Actively managing the assets to create value for
our partners.
Our investment approach requires that we actively manage assets for value
creation. We do not buy in markets with a business plan that is dependent
on a market improving. Instead, we seek to identify problems that can be solved
to create value.
