Capital Allocators – Inside the Institutional Investment Industry John Khoury – Asymmetry and Opportunity in Public Real Estate at Long Pond (EP.474)
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Dec 1, 2025 
In a captivating conversation, John Khoury, Founder and Managing Partner of Long Pond Capital, sheds light on his unique journey in public real estate investing. He discusses the evolution of the public REIT market and the shift from active to passive investing, revealing how these changes create opportunities. John elaborates on Long Pond's investment philosophy, focusing on exploiting valuation asymmetries. He also shares insights on various real estate sub-sectors and the recent launch of their active ETF, LPRE, designed to capitalize on high-quality investments.
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Keep Shorts Small And Catalyst Focused
- Keep shorts small and catalyst-driven because losses on shorts can amplify quickly.
- Use shorts tactically to hedge long exposures and express relative views rather than large outright bets.
Secular Winners Are Cheap After Multiple Repricing
- Top-quality secular winners (apartments, industrial, self-storage) were heavily overbuilt pre-2022 and repriced by higher rates.
- That combination created deep public-market discounts versus private market replacement costs.
Office: Recovery For The Best, Risk For The Rest
- Office isn't dead; top-tier office is recovering while lower-quality assets remain risky and capital intensive.
- AI may increase demand in pockets, but could also amplify vacancy long-term.