Timbervest Investment Argumentative Essay
You didn't address many of questions regarding Timbervest and its poor performance since the recession ended many years ago. Nor did you answer questions regarding the reason for your exit. Now, you're out the door and Domain Timber investors are left with the remnants of a very poor investment which was marketed very differently from how things turned out.
In 2005, at the Mesirow Highland Park office, I asked specifically how a Timbervest investment could be compared to the Timberland index. I was told "We'd be very disappointed if we did not surpass the Timberland index". I was aware of the low volatility but positive returns of the Timberland index, and believed that Mesirow had done diligence on you, so I invested. In your recent correspondence …show more content…
you stated "Considering this Fund was purchased pre-recession, we are quite pleased with the outcome. While we did not beat the NCREIF Timberland Index, please know that this is not a purchasable index."
So what am I supposed to make of the statement made to me in 2005?
The one that swayed me to invest. Was that a lie? Just a marketing pitch? I'm an accredited investor, so it's on me to determine what's truth and what's BS? Where's the disappointment? Please state what is pleasing about a negative 12 year return.
Also, this partnership was initiated in 2005, not 2007 or 2008, and at one time was marked 30% higher. So your pre-recession comment isn't valid. After, the recession, the partnership was marked down to even. But, from 2012 on, when every other investment (including Timber ETF's and indexes) were heading higher, there was no bounce in this Timbervest partnership and it is now apparent this will be a losing investment. Incidentally, you did not answer my question as to why no bounce In Timbervest since 2012.
To recap, this Timbervest partnership lagged the Timberland index by over 7% a year annualized from 2005 to mid 2016. Timbervest also underperformed CUT & WOOD, two investable ETF's both since their inception and from the recession end.
Contradictory statements now versus 2005, and lousy performance versus everything in the investment universe with no clear explanation as to why. An expensive lesson learned for me. Never
again.
In 2005, at the Mesirow Highland Park office, I asked specifically how a Timbervest investment could be compared to the Timberland index. I was told "We'd be very disappointed if we did not surpass the Timberland index". I was aware of the low volatility but positive returns of the Timberland index, and believed that Mesirow had done diligence on you, so I invested. In your recent correspondence …show more content…
you stated "Considering this Fund was purchased pre-recession, we are quite pleased with the outcome. While we did not beat the NCREIF Timberland Index, please know that this is not a purchasable index."
So what am I supposed to make of the statement made to me in 2005?
The one that swayed me to invest. Was that a lie? Just a marketing pitch? I'm an accredited investor, so it's on me to determine what's truth and what's BS? Where's the disappointment? Please state what is pleasing about a negative 12 year return.
Also, this partnership was initiated in 2005, not 2007 or 2008, and at one time was marked 30% higher. So your pre-recession comment isn't valid. After, the recession, the partnership was marked down to even. But, from 2012 on, when every other investment (including Timber ETF's and indexes) were heading higher, there was no bounce in this Timbervest partnership and it is now apparent this will be a losing investment. Incidentally, you did not answer my question as to why no bounce In Timbervest since 2012.
To recap, this Timbervest partnership lagged the Timberland index by over 7% a year annualized from 2005 to mid 2016. Timbervest also underperformed CUT & WOOD, two investable ETF's both since their inception and from the recession end.
Contradictory statements now versus 2005, and lousy performance versus everything in the investment universe with no clear explanation as to why. An expensive lesson learned for me. Never
again.