Founded by Mike Nierenberg in 2011, New Residential Investment Corp is a real estate trust focused primarily on residential real estate opportunities. Also known as NRI Corp, this private IPO company is for profit, and explores specialized investment strategies. Operating as a qualified REIT and being a company traded publicly on the NYSE is a featured aspect of this active asset management company. New Residential Investment Corp also deals with many non-Agency residential mortgage-backed securities. Two major items that the company focuses on are active asset management as well as passive asset management. This describes New Residential Investment Corp and their method of implementing active resolution where applicable.
Handling each of the three common investment challenges. Not only have they been on top of their game when dealing with investments, facing their top three challenges helps keep the asset managers on their toes. Knowing that any strategy employed could have full scale benefit or damage to the company, these moves must be managed carefully and agreed upon in a timely fashion. The three challenges faced the majority of the time are known to be tedious tasks and not to be taken lightly. The first would be the requirement of Constant Portfolio Monitoring, and this entails a very active approach and daily commitment. Active managers in investments have to keep a very delicate balance when dealing with series of transactions.
While complex, these transactions can prove to be very difficult to even the most seasoned New Residential Investment Corp investors. The last of these three challenges is maintaining larger cash positions. While holding large balances can be beneficial, they can also reduce earnings like those from cash holdings or investment returns. All in all, New Residential Investment Corp has successfully managed to rise above such asset management challenges by creating more that one strategic solution. Implementing a crucial strategic solution such as having a team adept at tackling demanding daily issues is a must. Facilitation of investment opportunities and beneficial deals creates more business in the mortgage origination and servicing areas. New Residential Investment Corp now includes ownership stakes in both of these businesses.