ACM Residential Real Estate Fund
The ACM Residential Real Estate Fund (REF) is a professionally managed model portfolio designed to provide sophisticated investors with targeted, exclusive exposure to the U.S. residential real estate sector. By utilizing the REF model portfolio, investors gain diversified access to a broad spectrum of residential real estate assets, including mortgage-backed securities, single-family homes, rental properties, multifamily apartments — both coastal gateway and Sunbelt — manufactured housing communities, and residential land development across the United States.
Structured as a hedge fund-of-stocks-and-funds, the model REF portfolio is constructed using a blend of passively managed exchange-traded funds (ETFs), real estate investment trusts (REITs), and publicly traded homebuilder equities. The portfolio employs a balanced equal-weight strategic asset allocation that distributes capital equally across three complementary residential real estate segments: 33⅓% mortgage-backed securities (VMBS), 33⅓% equity REITs, and 33⅓% homebuilder and land developer stocks. This equal-weight structure ensures no single segment dominates performance attribution and provides maximum diversification across the entire residential housing value chain — from land acquisition and financing through construction, ownership, and occupancy. This allocation is enhanced by a tactical asset allocation overlay, which facilitates periodic rebalancing to optimize risk-adjusted returns in response to evolving market conditions.
The combination of strategic and tactical asset allocation, the fund-of-stocks-and-funds structure, high-quality underlying investments, and a dynamic hedging strategy is designed to deliver the risk-managed performance expected by investors over a suitable investment horizon.
Allocation & Architecture
The ACM REF is a fund-of-stocks-and-funds portfolio structured on an equal-weight allocation across three residential real estate segments: 33⅓% Mortgage-Backed Securities, 33⅓% Equity REITs, and 33⅓% Homebuilder & Land Securities. This balanced architecture reflects the conviction that superior long-term risk-adjusted returns are achieved through equal participation across the entire residential housing value chain. The MBS segment (VMBS) provides yield stability and government-backed principal protection; the REIT segment (EQR, AMH, MAA, SUI) delivers dividend income and property appreciation across coastal apartments (EQR), single-family rentals (AMH), Sun Belt apartments (MAA), and manufactured housing communities (SUI); the homebuilder and land segment (DHI, PHM, TOL, FOR) captures cyclical growth and, uniquely through Forestar Group, pure-play residential land development unavailable in any other fund structure. The equal-weight structure requires periodic rebalancing, which systematically enforces a buy-low/sell-high discipline across segments.
The 33.33% agency MBS position serves three simultaneous functions within this portfolio. First, it provides a current income stream through coupon distributions regardless of equity market conditions. Second, it acts as a structural hedge against the equity volatility inherent in REITs and homebuilder stocks — precisely when those segments suffer their deepest drawdowns, agency MBS benefits from a flight-to-quality bid and government backing that insulates principal. Third, and most importantly, it preserves the fund’s exclusive residential real estate mandate: VMBS holds securities whose performance is directly determined by mortgage origination volumes, prepayment speeds, and housing finance conditions. Unlike a traditional 60/40 portfolio where the bond allocation has no thematic relationship to the equity allocation, the VMBS position here is economically linked to the same residential housing market driving the equity holdings — it is residential real estate fixed income, not a generic interest rate hedge. This thematic coherence is what distinguishes the ACM REF from a simple blended portfolio and justifies its classification as a dedicated residential real estate hedge fund.
Portfolio Holdings — 9 Securities Live data as of April 27, 2026
Agency MBS provides government-backed yield stability and acts as a structural hedge against equity volatility in the fund. When REITs and builders suffer drawdowns driven by rising rates, agency MBS benefits from flight-to-quality demand. The VMBS position maintains the fund's exclusive residential real estate mandate — it holds securities whose performance is directly determined by mortgage origination volumes and housing finance conditions, not generic interest rate dynamics.
Four REITs spanning every residential rental property type: coastal gateway apartments (EQR), single-family rentals (AMH), Sunbelt apartments (MAA), and manufactured housing communities (SUI). This four-way split within the REIT segment provides geographic and property-type diversification unavailable in any single REIT ETF. Each holding benefits from distinct demand drivers, reducing correlation within the segment during localized market stress.
Three homebuilder profiles — entry-level volume (DHI), move-up/active adult (PHM), and luxury/semi-custom (TOL) — plus Forestar Group (FOR), the only publicly traded pure-play residential land developer. The FOR allocation is unique: no other public fund provides direct exposure to residential lot development economics. The DHI/FOR relationship creates an integrated land-to-home production chain within the fund’s builder segment.
Suitability & Investor Access
The ACM REF is designed for sophisticated investors who require professionally managed, full-cycle exposure to the U.S. residential real estate market — and who understand that the optimal vehicle for that exposure is not a single REIT ETF or a homebuilder basket, but a risk-managed structure that spans the entire residential housing value chain. This fund is suitable for high-net-worth individuals, family offices, and institutional allocators for whom residential real estate represents a meaningful strategic allocation and who demand institutional-grade portfolio construction, transparent attribution, and defined downside controls.
This fund is not suitable for investors seeking maximum equity beta to residential real estate in a bull market. Investors with that objective can access concentrated homebuilder or REIT ETFs at lower cost. The ACM REF is built for a different mandate: to optimize the Sharpe ratio of residential real estate exposure across the full market cycle — capturing meaningful upside participation while limiting drawdown through dynamic hedging, fixed income ballast, and disciplined rebalancing. The 33.33% VMBS allocation intentionally reduces equity beta in exchange for government-backed yield stability and defensive characteristics during housing corrections. That trade-off is the defining structural attribute of this fund, and it should be evaluated accordingly.
Institutional allocators should benchmark this fund against a risk-adjusted residential real estate composite — not against pure-equity REIT indices such as REZ or sector ETFs such as ITB. The 60/40 benchmark used throughout this fund (40% VMBS / 30% REZ / 30% XHB) is the appropriate comparator: it reflects the same asset class exposures at a passive market-cap-weighted construction, against which the ACM REF’s active equal-weight allocation and dynamic hedging overlay can be fairly assessed.
No comparable publicly accessible product combines manufactured housing exposure (SUI), pure-play residential land development (FOR), single-family rentals (AMH), Sunbelt apartments (MAA), coastal gateway apartments (EQR), agency MBS (VMBS), and three distinct homebuilder profiles (entry-level DHI, move-up PHM, luxury TOL) in a single, equal-weight, actively managed fund with no lock-up period, full portfolio transparency, and a fee rebate policy.
ACM offers a flexible managed account structure wherein the investor establishes a brokerage account with a custodian of their choice and grants ACM limited discretionary trading authority to replicate the REF model portfolio. The investor retains exclusive control over deposits and withdrawals at all times. The brokerage firm provides custody, recordkeeping, compliance, and IRS tax reporting. ACM’s sole function is portfolio management — we have no access to investor funds beyond the authority to execute trades.
ACM establishes separately managed accounts (SMAs) held in trust with an independent custodial banking institution selected by the investor. At this tier, ACM assumes full responsibility for investment management, front-office functions, and back-office administration — including performance reporting, attribution analysis, compliance documentation, and investor communications. The SMA structure provides complete legal separation of assets and full audit transparency.
About Troy Morris Adkins II
Troy Morris Adkins II is the founder and portfolio manager of Adkins Capital Management LLC, with exclusive focus on the U.S. residential real estate industry. As a thought leader and progressive hedge fund investment manager, Troy has committed to providing investors with transparent operations, comprehensive investment exposure exclusive to the residential housing industry, fully disclosed investment guidelines and performance, liquid holdings with no lock-up period, and a fee rebate policy that returns ACM’s management fee in full for any calendar year in which the model REF Fund delivers a negative return.
Troy routinely conducts a copious level of qualitative and quantitative due diligence on every security in the model REF Fund and periodically conducts research across the broader residential real estate universe to determine if any portfolio changes would enhance the risk-return profile of the fund. ACM also provides analytical services to prospective home buyers, housing educational services, sell-side investment management research to institutional asset management firms, and consultancy services to federal government agencies.
- Transparent operations and fully disclosed holdings
- No lock-up period — complete liquidity at all times
- Fee rebate if calendar-year return is negative (0.25% ACM fee)
- Competitive, transparent fee structure with prepaid annual invoice
- Exclusive, comprehensive residential real estate market exposure
- Clearly defined and controlled investment risks
- Dynamic hedging to protect against material downside events
- Full attribution analysis and performance reporting
The ACM Residential Real Estate Fund (REF) is a simulated model portfolio and does not represent an actual investment fund. All data shown is hypothetical and based on historical market prices. Results do not represent actual fund performance and have inherent limitations including the absence of actual trading costs, bid-ask spreads, and full fee impact.
The ACM REF employs an equal-weight allocation of 33.33% across three segments: Mortgage-Backed Securities (VMBS 33.33%), Equity REITs (EQR, AMH, MAA, SUI — 8.333% each), and Homebuilder & Land Securities (DHI, PHM, TOL, FOR — 8.333% each). Benchmark: 40% VMBS + 30% REZ + 30% XHB (60% equity / 40% fixed income). YTD prices sourced from Yahoo Finance and refreshed every 24 hours.
Past performance is not indicative of future results. This information is provided for educational purposes only and does not constitute an offer or solicitation to buy or sell any securities. Investing involves risk, including the possible loss of principal. ACM Expense Ratio: 0.25% per annum. Underlying expense ratios: <0.76%. The ACM management fee will be rebated in full for any calendar year in which the model REF Fund delivers a negative return.
©2020–2026 Adkins Capital Management LLC. All rights reserved. Last updated: April 27, 2026 at 9:08 AM EDT • Live data: Yahoo Finance.