Category Archives: Investments

Mike Nierenberg Believes MSRs Are Worth A Deeper Look

As the Chairman of the Board, President, and CEO of New Residential Investment Corp, Michael Nierenberg has a lot of experience in the residential investment market. This has been especially true since being named CEO and President in 2013, and even more so since being appointed Board Chair in 2016. Through this time, Mr. Nierenberg has been seen as an innovative pioneer in the industry, given a combination of unique moves he’s made with New Residential.

One point that he’s been focusing on in a past couple of years is Mortgage Servicing Rights, additionally called MSRs. Throughout Michael Nierenberg’s time with New Residential Investment Corp, he’s continually chased down a variety of under-appreciated assets, especially within MSRs. Through this time, he’s found two key factors in picking out ones which will be successful. The first of these is that they have acceptable capital levels to continue developing. The second is also focused on expansion, as this is having the ability to develop a growing number of partnerships in the industry.

On the off chance that a business can’t meet these, then they’re more than likely not going to be a beneficial asset, according to Mr. Nierenberg. With this mindset, Michael Nierenberg has helped New Residential Investment Corp with expanding over the past half-decade. For example, he was one of the essential drivers behind the companies growth to handling $118 billion of managed assets in 2018 alone. A considerable amount of this was a consequence of the innovative and unique ways that Mr. Nierenberg looks for new investments.

A lot of it has also been because Mr. Nierenberg has always embraced a keen knowledge of the industry. Over his career, he’s developed an a deep understanding of the overall residential retail market, as well as what needs to be done to build a business. This knowledge helped drive Michael Nierenberg’s success, as when it comes to many situations and investments, he’s intensely aware of the potential ramifications of any investment or change in the industry. Because of that, he’s able to come up with solutions to problems on a quick and regular basis.



Immense change at Fortress Investment Group

In 1988, Fortress Investment group was a Hedge Fund that went viral and was the first to go public in the New York stock exchange. By 2017, the Fortress Investment Group had overseen 40 Billion dollars in global assists. In the same year, Softbank, a financing company purchased Fortress Investment Group. Together they would develop TSX Broadway in Times Square in New York. The project will include 75,000 square foot of retail and a luxurious hotel that has 46 floors.

In October, the company closed on one of their biggest investments, a 20 million dollar retail building. In the first year of Softbank and Fortress Investment group working together, they created two new real estate funds. One of the funds is to provide direct private- equity credit and the other to purchase debt.

In May, they announced that they were raising 400 million dollars for a fund that would pursue legal remedies for the violation of intellectual property. This fund is to curtail violations by purchasing the patent portfolios and loan money to those that are protecting their own portfolios.

In June, Ipass Partnership announced 20 million dollars in credit from affiliate funds from the Fortress Investment Group. Ipass is the largest WiFi company in the world that offers more than 64 million hotspots. They wanted to finance their company and was secured with the Ipass patent portfolio. For the past year, it has been a lot of immense change within the company. It has grown to an even larger investment group than the past years. From working with Softbank and creating retail within Broadway to partnering with the worlds largest WiFi Hotspot company.

The company continues to open new vistas, investing in vehicles and opening new retail buildings. The company is sure to have even more success in the future.

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Gareth Henry: How Quantitative Investing Has Become So Popular

While for most investors the techniques of fundamental analysis are used when choosing stocks, more and more have adopted the techniques associated with quantitative investing. Originally known as program trading, this method at first was considered something only those investors on the outer fringes of the market ever used. However, according to well-known investment expert and financial manager Gareth Henry, quantitative analysis is often now seen as the best approach for investors who want to make tremendous profits.

While sounding more like something found in a math class, Gareth Henry has noticed quantitative investing is used by more and more hedge funds and financial institutions. In most cases, transactions where quantitative investing methods are used are very large, often involving shares of stocks and other securities that number in the hundreds of thousands. As Gareth Henry has noted, quantitative investing is relied on in these transactions because it allows investors a better chance to conduct in-depth examinations and analysis before making their final decisions.

However, while these investing techniques are most often used for large transactions conducted by investment firms and other financial institutions, Gareth Henry also notes quantitative investing can be used by many types of investors, from individuals to governments of large nations. In either case, the same basic principles of risk management, strategic identification, and trade execution apply.

To demonstrate just how popular quantitative investing has become in recent years, Gareth Henry has discovered that over 90 percent of trading volume conducted in the United States stock market is done by way of quantitative analysis. In fact, some economists familiar with the investing technique claim that more than $1 trillion is currently used worldwide in this area, making it a technique that has clearly become relied on more and more by investors across the spectrum.

As world markets continue to experience large gains, it is expected many more investors will turn to quantitative investing as their preferred method of achieving wealth. But to do so successfully, they must always remember that like any mathematical formula, precision and accuracy are key to ensuring they get the correct answer.