New Real Estate Hedge Funds Popping Up

Several notable names are in the midst of raising money for new real estate-focused hedge funds.

Two weeks ago, Jay Leupp, managing director of equity research at RBC Capital Markets, became the latest to jump into the space. Leupp, who has covered real estate investment trusts for more than 14 years, has taken his sell-side REIT team with him to launch a new long-short hedge fund called Alesco, sources say. The San Francisco-based fund is said to be in the process of raising money. Leupp couldn't be reached for comment.

Colony Capital, a firm headed by legendary real estate investor Tom Barrack, has been raising funds since last year for its hedge fund, according to people familiar with the situation. Colony is partnering with Saudi billionaire Prince Alwaleed bin Talal on the $3.9 billion buyout of Fairmont Hotels & Resorts(FHR Quote). ...