The first quarter of 2020 will go down in the financial history books, as the longest-ever bull market in U.S. history came to a crashing end as a result of the coronavirus outbreak. By the end of the first three months, the Dow Jones Industrial Average had cratered 22.73%, the S&P 500 down nearly 20%, and the NASDAQ seeing losses of just under 14%.
Overall, real estate funds saw even greater losses during the first quarter. The MSCI U.S. REIT Index saw total returns of -26.99% and the ever-popular Vanguard Real Estate ETF (ETF: VNQ) yielded returns of -24.24%.

However, not all real estate funds saw massive losses like publicly-traded REITs did during the first quarter. Sortis Holdings, Inc. (OTC Pink: SOHI) announced that its Sortis Income Fund (SIF), an unleveraged mortgage fund, saw a positive net return of 7.1% during the tumultuous first three months of 2020.
SOHI Team: SIF Inflows Around $13 Million During Q1 2020
As REITs and other income-focused investments slashed dividends, the Sortis Income Fund was still able to provide a positive return to its investors. The yield was slightly lower during Q1, but that was due to the fund mostly remaining on the sidelines, awaiting opportunities to present themselves.
During times of extreme market volatility, the fund’s focus on principal protection becomes a major highlight. In addition, the SIF is an unleveraged fund, which focuses on short-term notes that are backed by real estate collateral. The conservative and consistent nature of the fund could be a potential explanation for its inflows of around $13 million during the first quarter.

“In an environment where the stock market has dropped significantly, REIT valuations have plummeted and other funds are paying little to no dividends, we take pride in delivering a solid return to our investor base,” notes Jef Baker, SIF managing director. “It is a volatile environment like this that validates the SIF’s number one goal of principal protection. We kept dry powder on the sidelines all through March, which slightly lowered our yields for Q1. That patience should pay dividends in Q2 as we are already seeing once in a cycle lending opportunities.”
The SOHI income fund and its other investment funds are accessible through major national investment platforms or even directly from Sortis Holdings.
Overall, the SOHI flagship real estate fund continues to be a solid performer during these troubling times. Management has been very transparent around their economic views and overall portfolio impacts as a result of the shifting real estate market dynamics. The recent Sortis Economic Forecast with Dr. Bill Conerly webinar yielded great information and insight into the company’s goal of capitalizing on the opportunities that are beginning to present themselves. Sortis Holdings and its funds continue to be a compelling long-term story.
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