Timber Investment Management Organization - TIMO
Categories: Econ, Managed Funds
Our brother-in-law Troy isn’t much of a nature guy, so boy we were surprised when we were all at the park the other day and he ran up to a tree and...hugged it. When he saw the shock on our faces, he explained: “Trees make me money.” That’s because he’s got some timberland investments in his portfolio, which are investments in, well, timberland: forests and tree farms and stuff.
Timberland investments are kind of a complicated animal. Different timberlands are focused on different objectives, which is why, for the most part, investments in them are managed by something called a “TIMO,” or “timberland investment management organization.” These groups work with institutional investors to identify and manage timberland investments. And since trees, the lumber they produce, and the real estate they sit on never really go out of style, they’re considered a good portfolio hedge.
No wonder Troy’s in such a tree-hugging mood.
