ABOUT US:
CORNERSTONE MARKET DRIVEN STRATEGY
Since 1989, Cornerstone’s management team has provided investment advisory services to some of the world’s largest institutional investors. Our rigorous, quantitative model focuses on creating value through dynamic asset management.
Step 1: Define markets
Top 50 major metropolitan markets in the U.S. tracked by Torto Wheaton.
Step 2: Identify key factors to be used to rank the markets
- Risk Measures - Volatility, barriers to entry
- Momentum - Employment growth, population growth (historical & projected)
- Liquidity - Overall size of market, depth of market (availability of this product type versus others)
- Cyclical Trends - Fundamentals compared to historical trends (vacancy rate, absorption, etc.)
Step 3: Rank markets
Markets are ranked according to the key factors as discussed above. Each market is given a grade of A through F based on position.
Step 4: Assign weighting to each key factor
The factors are prioritized by importance and weighted accordingly.
Step 5: Derive overall grade and ranking of the markets
Based upon the previous key factors, each market’s rankings for these factors, and the weighting assigned to each factor, all 50 markets receive an overall grade (or score) and are then ranked accordingly.