Latest news with #RithmCapitalCorp
Yahoo
30-04-2025
- Business
- Yahoo
Rithm Capital Corp. (RITM): Among Billionaire Michael Platt's Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Rithm Capital Corp. (NYSE:RITM) stands against other billionaire Michael Platt's stock picks with huge upside potential. Michael Platt is the co-founder and CEO of BlueCrest Capital Management, which was founded in 2000 following his almost decade-long employment at JPMorgan. BlueCrest reached its height in 2013, when it became one of the world's largest hedge funds, managing more than $35 billion in assets. In 2015, in response to equity challenges and disappointing results that caused investor withdrawals, Platt converted the company into a family office. This strategy adjustment proved to be a game-changing decision for BlueCrest Capital Management. Since becoming a family office, the fund has generated impressive net returns, including 50% in 2016 and 54% in 2017. It has continued to succeed, delivering returns of at least 25% annually, including outstanding net returns of 95% in 2020 and 153% in 2022. Platt's aversion to the spotlight is almost as famous as is his financial competence. His last significant public appearance was more than a decade ago, to promote an art display featuring a life-size wax gorilla nailed to a wooden cross. Since then, he has shunned the media. Despite his preference for privacy, Platt has been involved in a number of regulatory disputes. BlueCrest has received hefty penalties from both the US Securities and Exchange Commission and the UK Financial Conduct Authority for conflicts of interest and other regulatory violations. However, these setbacks have had no impact on his financial or reputational status, owing to the fact that BlueCrest does not have any external clients. According to Forbes, Michael Platt is Britain's richest hedge fund manager, valued at over $18.8 billion as of December 2024, and is among just a handful who have managed to profit in 2025 despite the global stock market sell-off caused by President Trump's policies. According to Bloomberg, BlueCrest is already up 20% for the year, considering fees and costs. Platt allegedly employed aggressive leverage to take advantage of the increased volatility caused by President Trump's trade war, with BlueCrest currently on course to finish a decade of consecutive returns. For this article, we examined BlueCrest Capital Management's Q4 2024 13F filings to list down billionaire Cliff Asness' stock picks with the highest upside potential. We ranked the companies in ascending order of their upside potential. These equities are also popular among elite hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A real estate executive standing in front of a row of newly constructed Capital Corp. (NYSE:RITM) is an internally managed REIT that oversees real estate and financial services. The company invests in an extensive variety of real estate assets, including residential mortgage loans, consumer loans, residential transition loans, and commercial real estate. Piper Sandler upgraded Rithm Capital Corp. (NYSE:RITM)'s stock rating from Neutral to Overweight on April 28, raising the price target to $14 from $12.50. The change follows Rithm Capital's stellar first-quarter 2025 performance, which Piper Sandler analysts praised on account of its strong service fee income and 17% core return on equity (ROE). Rithm Capital Corp. (NYSE:RITM) announced first-quarter 2025 earnings of $0.52 per share, above consensus expectations of $0.47. However, the company's revenue fell short of expectations, totaling $768.38 million instead of $1.24 billion. Despite the revenue shortcoming, Rithm Capital Corp. (NYSE:RITM)'s earnings available for distribution climbed 8% year-over-year. Overall, RITM ranks 1oth on our list of billionaire Michael Platt's stock picks with huge upside potential. While we acknowledge the potential for RITM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than RITM but trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
29-03-2025
- Business
- Yahoo
Rithm Capital Corp. (RITM) Among the Most Undervalued REIT Stocks to Invest In Now
We recently published a list of . In this article, we are going to take a look at where Rithm Capital Corp. (NYSE:RITM) stands against other most undervalued REIT stocks to invest in now. According to the National Association of Realtors, sales of previously owned homes in February increased 4.2% from January while they were 1.2% lower year-over-year. Home buyers are slowly moving into the market although mortgage rates have not changed much. Although the market is still tight, it is witnessing more inventory and choices, with the inventory at February end standing at 1.24 million units thereby representing a 17% rise year-over-year. The tight supply is still driving home prices up since the median price of a home sold in the month of February was 3.8% higher, as compared to last year. Lawrence Yun, NAR's chief economist, previously appeared on CNBC to give insights on the state of the housing market. In his opinion, if inflation comes down due to deregulation policies despite the tariff conditions or more home construction occurs with the federal government opening up for more development, the market might see lower mortgage rates along with the Fed rate cut. Simultaneously, the Federal Reserve decided to hold the interest rates steady amidst uncertainties around tariffs. Logan Mohtashami, HousingWire lead analyst, thinks the cure for tariffs is lower mortgage rates. In an interview with CNBC, he said that if mortgage rates go down and new home sales start to grow, the builder would find a way to sell homes and build homes. Although builder sentiment has recently fallen considering their profit margins are stressed amidst tariffs, this sentiment tends to increase with rates going down. In order to compile a list of the 10 most undervalued REIT stocks to invest in now, we first used a stock screener to shortlist REIT stocks trading at a forward P/E of less than 15, as of March 25. From this list, we selected the top 10 stocks with the highest number of hedge fund holders, as of Q4 2024. The 10 most undervalued REIT stocks to invest in now have been arranged in ascending order of the number of hedge funds that disclosed stakes in them at the end of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A real estate executive standing in front of a row of newly constructed townhomes. Rithm Capital Corp. (NYSE:RITM) is an asset manager focused on real estate and financial services. The firm invests across a variety of real estate and financial services assets some of which include residential mortgage loans, consumer loans, residential transitional loans, and commercial real estate. The firm was formed as a limited liability company in September 2011 and has been structured as an internally managed REIT since June 2022. Rithm Capital Corp. (NYSE:RITM) owns and actively manages a family of operating companies across the complete real estate and lending lifecycle including Newrez, Genesis Capital, and Sculptor. Rithm Capital Corp. (NYSE:RITM) serves as a high-performing diversified asset manager currently leveraging the strength of its vertically integrated operating companies with capabilities in direct asset sourcing, asset optimization, and capital markets. The firm closed 2024 with robust earnings and a strong performance in each of its core businesses. With regards to Genesis Capital, the firm had a record FY24 origination volume of $3.6 billion, based on a high-performing client franchise and an expanding product suite. Simultaneously, Newrez had $844 billion in total servicing, positioned as the number three servicer, and $59 billion in FY24 funded volume. Overall, RITM ranks 2nd on our list of most undervalued REIT stocks to invest in now. While we acknowledge the potential of RITM as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than RITM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
25-03-2025
- Business
- Yahoo
Rithm Sells Largest Ever Bond Backed by Homeowners' Mortgage Fees
(Bloomberg) -- Rithm Capital Corp. sold nearly $900 million of debt backed by the fees collected from homeowners when they make their mortgage payments, in what the firm said is the largest ever securitization of its kind. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Chicago Transit Faces 'Doomsday Scenario,' Regional Agency Says LA Faces $1 Billion Budget Hole, Warns of Thousands of Layoffs New York Subway Ditches MetroCard After 32 Years for Tap-And-Go Why Did the Government Declare War on My Adorable Tiny Truck? Bond buyers finalized their orders earlier this month at a spread of 290 basis points over Treasuries. Rithm expanded the original size of the deal to accommodate more investors, according to Sanjeev Khanna, the company's head of capital markets. The bonds are tied to rights to collect mortgage payments, known as mortgage servicing rights, and it's only the second such deal that's non-recourse, the company said. That feature means that if the bonds fail to make payments, investors can only make claims on the assets in the securitization itself, not on Rithm. That feature makes the securitization more similar to other types of asset-backed securities, potentially paving the way for more deals, according to Charles Sorrentino, head of investments at Rithm. 'Once the corporate guarantee is removed, the transaction works in a manner that's more familiar to structured products investors,' he said. It's also the second deal not to have a credit rating, according to Rithm. The company sold the first non-recourse, non-rated mortgage servicing rights securitization last year. Mortgage servicing rights holders pocket a small fee as compensation. These rights become more valuable as interest rates increase, because fewer homeowners will refinance their loans in that scenario, generating a stream of fees for the servicers for a longer period of time. Rithm is among biggest sellers of mortgage servicing rights securitizations, having issued 17 such deals for more than $7.7 billion combined, according to the statement. A New 'China Shock' Is Destroying Jobs Around the World How TD Became America's Most Convenient Bank for Money Launderers The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? Tesla's Gamble on MAGA Customers Won't Work One Man's Crypto Windfall Is Funding a $1 Billion Space Station Dream ©2025 Bloomberg L.P.
