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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From Family Apartments To Public RE Investing
- John Khoury traced his real estate roots to family apartment businesses in Fredericton and early banking at Lazard.
- A chance conversation with Art Rubel steered him from private equity into public real estate investing in 2002.
Real Estate Became More Diverse And Dispersed
- The public real estate universe expanded from ~$300B and four subsectors to many specialized niches with lower correlation.
- Secular risks (e.g., e-commerce, COVID) created dispersion and more targeted investment opportunities.
Passive Flows And Pods Create Volatility
- Passive inflows and short-term pod trading changed market behavior and increased volatility in REITs.
- That volatility creates larger disconnects between price and intrinsic value that specialists can exploit with duration.