OVERVIEW
Through the identification of supply-demand source imbalances in capital, product types and information availability, Colony achieves attractive risk-adjusted returns by investing in real estate, non-performing loans, distressed assets, real estate-dependent operating companies, and select commercial and residential development opportunities throughout the world.

STRATEGY
Colony employs the entrepreneurial investment strategy which has been successfully executed over the past seventeen years. This strategy is designed to consistently achieve attractive risk-adjusted returns by minimizing competition with other capital sources, while maximizing value through intensive post-acquisition management.

Three themes define this strategic approach:

• Cautious Contrarianism
during downturns or secular changes, investing in out-of-favor sectors or markets to exploit capital or product misalignments

• Exploitation of Inefficiencies
capitalizing on information advantages to identify micro-market imbalances and secure investments on favorable terms

• Value-added Management to Optimal Exits
creating capital appreciation opportunities through repositioning, restructuring, development, and intensive management

Colony has effectively applied its investment strategy throughout a variety of market conditions. As competitive pressures in the U.S. portfolio sector reduced expected yields, Colony expanded the geographic and product scope of its investment activities while maintaining the discipline of its historically successful strategy.