Farmland has good upside/downside capture behavior versus the S&P. It provides consistent returns in S&P up markets and hedges S&P down markets.
Key Highlights
Upside/Downside Capture Matters:
The upside/downside capture ratio is an indicator of how well an asset performs during periods where the reference index (S&P 500 – public equities) is experiencing negative returns and when it is experiencing positive returns.
Farmland has Good Upside/Downside Capture:
Farmland has provided strong positive returns in both S&P down and up markets (using the 30-year period from 1992 to 2022 - upside capture = 39.1, downside capture = -44.1).
Farmland versus other Alts:
Farmland outperforms many other conventional and alternative asset classes in both this defensive and upside performance versus public equities.