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Thought Leadership

Starlight Capital publishes whitepapers and educational series to help advisors and investors understand the financial landscape.
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Insight Series: Macro Trends Drive Data Centre Utilization

April 2019

Data Centres are purpose-built facilities designed to house servers and network equipment. Data centre utilization is driven by global macro trends such as big data, e-commerce, cloud computing, the internet of things, social media, gaming/e-sports, streaming and general business or personal computing.
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Insight Series: Traffic and Toll Growth Drive Toll Road Appreciation

March 2019

Toll road companies generate long-term returns based on proposed tolls, anticipated traffic levels and the duration of the concession.
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Insight Series: Tower REITs Drive Margins and Return on Capital

January 2019

Publicly-traded Tower REITs generally own a network of vertical tower structures upon which their tenants, large telecommunications firms, place their communications equipment. The Tower REIT benefits from increased utilization of their tower network, which drives margins
and return on capital.
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Focused Business Investing

September 2018

Focused Business Investing attempts to build a concentrated portfolio of high-quality businesses that will generate superior risk-adjusted returns over the long term. The focus is on companies with strong, recurring free cash flow from irreplaceable assets, capitalized with low levels of debt and run by management teams that behave like true stewards of investor capital.  However, this must be done only when these companies are priced to deliver sufficient return for the risk incurred.
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The Case for Global Real Estate

September 2018

Real estate firms generate long-term cash-flow streams with leverage to rising economic output. This is confirmed by the long-term outperformance of REITs over the last 25 years, compared to both global stocks and global bonds. The outperformance of REITs over this time period is often linked to declining interest rates, however it’s important to note that global equities outperformed global bonds during this time period. Global equities were also levered to falling interest rates and, certainly, to rising economic output. The outperformance of REITs during this time period is a function of their structure and the unique attributes of REITs.
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The Case for Global Infrastructure

September 2018

Infrastructure assets provide essential services that allow global cities to function.  The almost inelastic demand for their services results in consistent revenue, margin and cash flow growth.  Global macro trends such as population growth, urbanization and digitization drive the continued utilization of these assets. Infrastructure businesses add to portfolio diversification because of their low correlation to other asset classes.  Infrastructure assets have historically outperformed equities and remain under-allocated to by most investors.
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Rising Interest Rates and Impact on REITs

September 2018

Since 1975 there have been six periods where the U.S. 10-year bond yield has risen significantly. During four of those time periods, REITs generated positive returns and during three of those periods, REITs outperformed stocks. Rising long-bond yields are usually associated with increased economic output and inflation, both of which are likely to be positive for REITs. Increased economic growth should result in the demand for more real estate as employment rises. As occupancies rise rents should follow, resulting in increased REIT cash flows, distributions and valuations. 
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How REITs Generate Growth

At Starlight, we attempt to add value by concentrating our investments into high-quality REITs with multiple value creation levers at their disposal. REITs with more growth potential should outperform through the cycle but their value is especially important when economic activity accelerates, and inflation expectations and spot rates rise. Purchased when they offer us sufficient return for the risk incurred these investments should yield us strong risk-adjusted returns over the long term.
Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any mutual funds managed by Starlight Capital. These views are not to be considered as investment advice nor should they be considered a recommendation to buy or sell. Documents (including press releases) regarding the various investment funds that are managed or advised by Starlight Capital are provided for information purposes only and cannot be relied on to be complete, exhaustive or error-free unless the complete set of documents for any given investment fund with respect to which information is being sought is reviewed and then only on SEDAR (www.sedar.com).


Forward-looking statements

Any “forward-looking” statements contained in this Website represent Starlight’s views of possible future events or circumstances and are based on our observations and analysis of current events and trends. These statements are generally expressed in the future tense and may not be expressly identified as forward-looking statements. Forward-looking statements are based on assumptions made by Starlight regarding our beliefs and opinions, and are subject to a number of mitigating factors. Forward-looking statements may prove to be incorrect. Economic and market conditions may change, which may materially impact the views of Starlight, our actual course of conduct and the success of our intended investment strategies.

© Copyright 2019 Starlight Investments Capital LP. All Rights Reserved.

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