Real Estate From a Hedge Fund's View

To gain insight into the latest real estate investments, it's always good to check in with Carl Tash.

Tash is the portfolio manager of Cliffwood Partners, a long/short real estate securities hedge fund he founded in 1994. Cliffwood is considered the first hedge fund to be solely dedicated to real estate.

Prior to creating Cliffwood, Tash worked for 12 years in the acquisitions department at commercial real estate owner JMB Realty.

TheStreet.com recently spoke with Tash, who shared some insight on his recent trip to the gambling hotspot of Macau, China. He also talked about the problems in the subprime mortgage market and predicted that if the Federal Reserve cuts interest rates, it would only create a dangerous stock market bubble.

Checking Out China

Macau, near Hong Kong, is the only area of China in which casino gambling is legal. The region is projected to surpass Las Vegas as the world's largest gaming market. Cliffwood Partners doesn't currently invest in casino companies, but Tash traveled to Macau recently to see firsthand what Taubman Centers(TCO Quote), the fund's largest holding, is building in the region.

Taubman is developing the retail component of Macau Studio City, a gaming resort property on the Cotai Strip, not far from where Las Vegas Sands(LVS Quote) will open its Venetian Macau resort in July. Taubman will hold a minority interest in the retail site.