Hedge funds are betting that a real estate downturn may spread to office buildings. Should you bet with them?
Fund managers who were short the residential mortgage space made a lot of money, explains Karen Finerman. Now they’re looking for the next trade and think it’s office buildings.
If you want to play along, she recommends betting against Simon Property Group (SPG), Taubman Centers (TCO) and the iShares Dow Jones US Real Estate ETF (IYR).
Guy Adami agrees.“SPG could have farther to fall,” he says.