Growth Strategy

Our core investment strategy is built on a simple yet powerful idea: finding and exploiting public-private real estate valuation discrepancies. After years of experience in the private real estate market, we have found that publicly traded real estate offers a unique set of advantages that can lead to superior, long-term returns.

We actively hunt for publicly traded companies and REITs, particularly small-cap and OTC-listed ones that are often ignored by larger investors. We see the market as often irrational, pricing these assets at a significant discount to their true value. Our strategy is to be patient, disciplined, and ready to buy when the opportunity aligns with our analysis.

How We Find Opportunity

Our strategy for growth is built on a set of guiding principles that allow us to capitalize on market inefficiencies and protect capital.

Our Competitive Advantage

We believe our strategy works because it capitalizes on unique market dynamics that the private sector cannot offer:

This approach has allowed us to produce strong results, which can be seen in detail by looking at our semi-annual updates.

Case Study 1: Copper Properties Liquidating Trust

One of the most compelling examples of our strategy in action is the Copper Properties Liquidating Trust.

The trust was formed to sell off a portfolio of JC Penney-owned real estate after their bankruptcy filing. When we began investing, the trust was debt-free and owned over 100 retail properties with a long-term lease in place.

We acquired assets at a steep discount. On a cap rate basis, we were buying at 13-14% while properties were being sold at 6-8%. For those unfamiliar with real estate, we were essentially paying $7.10 to $7.70 for every dollar of annual earnings, while the private market was paying $12.50 to $16.60. This was a simple arbitrage play.

This provided a remarkable margin of safety, allowing us to earn a yield of over 12% from lease income while we waited for the value to be unlocked. We've since exited the position with a compound annual return of 41.40%. This demonstrates the power of our strategy: finding simple, overlooked opportunities in the public market that offer immense value and robust downside protection.

Case Study 2: Millrose Properties

The spin-off of Millrose Properties from major homebuilder Lennar presented a perfect opportunity for our strategy. The thesis was simple: Millrose owned a vast amount of valuable, developable land in the U.S. in a market facing a significant housing shortage.

Lennar, its parent company, is owned by large institutional funds that are often mandated to sell off shares from spin-offs. We correctly anticipated this would cause indiscriminate selling and push Millrose's stock price down, regardless of its underlying value.

Sure enough, we were able to invest a large portion of our fund in Millrose shortly after the spin-off. As the market correctly repriced the company based on its true value rather than the forced selling, our investment has gained over 50% in approximately six months. This case study demonstrates our ability to capitalize on unique market dynamics to deliver outsized returns.

Fund Structure

Our Growth funds are structured as a Limited Partnership (LP), with Harvey Capital LLC serving as the General Partner (GP) and investors as Limited Partners (LPs). This model ensures that all LPs have liability limited to their initial investment.

We operate on a simple 82/18 profit split, meaning 82% of all net earnings go directly to our Limited Partners, with the remaining 18% going to the General Partner. We charge no additional management fees or AUM fees.

There is a $100,000 minimum investment to join the fund. All earnings are retained and compounded within the fund over a 7-year lockup period. After this term, the fund's assets will be fully liquidated and returned to all LPs. We provide full financial transparency, issuing a 1065 partnership return and K-1s to all Limited Partners each year for tax purposes as well as semi-annual updates going over what we own and why we own it.

A Differentiated Approach to Outperformance

Our fund is designed to offer you something truly different. Unlike most portfolios heavily weighted in large-cap tech companies, our strategy focuses exclusively on off-the-beaten-path, small-cap publicly traded real estate. This specialized focus means our fund is likely uncorrelated with your current holdings, providing a valuable layer of diversification. Having a portion of your investable capital in this niche market can be highly advantageous, as it allows you to capture returns from a segment that behaves independently of the broader stock market.

We don't believe we have a competitive advantage in valuing mega-cap stocks. Instead, our edge comes directly from my unique background as a real estate lender, borrower, and developer — a perspective most fund managers simply don't have.

Our goal is straightforward: to outperform the S&P 500 over the life of the fund by sticking to a niche process. We seek out simple, overlooked real estate opportunities with a clear catalyst to unlock value and deliver outsized returns to our investors.

This content is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities. Any such offer will be made only through a formal offering memorandum.