Hedge Fund Anson Bets on Canada's Real Estate Market Amid Strong Performance

Anson Funds Management has reported a 21.2% return for its flagship fund in 2025, doubling its previous performance. The firm's total assets under management grew to $2.4 billion by the end of the year.

The firm is showing increased interest in Canada's real estate sector. Chief Investment Officer Moez Kassam stated that the market is becoming more attractive, especially in REITs.

Anson has already built positions in InterRent and Minto Apartment REIT, both of which are set to be taken private. The firm is also exploring opportunities in the UK housing market, with a 7.3% stake in Vistry Group Plc.

Why Did This Happen?

Toronto home sales declined by 11.2% in 2025 compared to the previous year, and benchmark prices fell by 6.3%. Despite this, Kassam sees potential for a recovery due to a lack of new housing supply.

Anson is also investing in US special purpose acquisition companies (SPACs), particularly those linked to Donald Trump's return to power. The firm holds stakes in Eric Trump's and Yorkville Acquisition Corp., among others.

How Did Markets React?

Real estate funds in the US dropped in response to Trump's proposed ban on large investors buying homes. ETFs like iShares U.S. Real Estate and Vanguard Real Estate fell into negative territory shortly after the announcement.

In Canada, the real estate market has been slower but not stagnant. Anson's investment in Vistry is benefiting from government-led initiatives to build affordable housing, with shares rising 12% in London in 2025.

What Are Analysts Watching Next?

Anson's long-short strategy faces challenges in the short-selling space, which Kassam described as a "very, very hard business" in 2025.

The firm's performance in SPACs has been mixed. For example, its investment in ProCap Financial did not perform as expected due to delays and shifting sentiment.

Investor sentiment toward hedge funds remains strong, with global funds averaging a 16% return in 2025, up from 8% the previous year.

Anson's strategic focus on real estate and SPACs aligns with broader trends in global asset management. The firm is looking to leverage its experience in bold wagers to continue growing its assets under management.