gonin/iStock via Getty Images While publicly listed REITs have averaged strong returns north of 9% over the long term, they just cannot compete with the 15% return claims being made by private equity real estate funds. Unfortunately, this means that public REITs are losing the war for investment dollars. However, if we examine it more closely, the data shows that investors are better off investing...
gonin/iStock via Getty Images While publicly listed REITs have averaged strong returns north of 9% over the long term, they just cannot compete with the 15% return claims being made by private equity real estate funds. Unfortunately, this means that public REITs are losing the war for investment dollars. However, if we examine it more closely, the data shows that investors are better off investing in public REITs, even something as basic as the Vanguard Real Estate Index Fund ETF ( VNQ ) rather than private equity real estate. Preqin shows that the most common targeted IRRs are 14%-17.9% Preqin This Preqin data is for 2012 so it is a bit old, but that is a good point of reference because we now have the data showing the results and can compare claimed IRRs with actual returns. In brief, public REITs have averaged returns of 9.72% while private real estate funds only average 7.79% 1998-2023). We will describe these figures in greater detail later on, but first I want to explore how private equity real estate funds claim targets of 15% when their actual returns have been only half that. How private equity juices targeted returns While boasting these incredibly high targeted returns, many also announce intent to invest in asset classes like: Distribution facilities leased to investment grade tenants. AI ready data centers Luxury apartments in supply restricted MSAs For those who don’t follow real estate investing, these are hot asset classes. Cap rates on these properties are often in the 5s and sometimes in the 4s. So how do these private equity vehicles go from ~5.5% cap rates on their underlying assets to targeted returns of basically triple that? One means is excessive use of leverage. Let us go ahead and model that. Impact of leverage on targeted return In the current environment there are relatively small spreads between cost of debt and cap rates. A 6% cap rate and 5% cost of debt would be fairly typical. Even with a 1% spread, higher leverage does indeed increa...
Expand NYSE : OWL Blue Owl Capital Today's Change ( 4.45 %) $ 0.39 Current Price $ 9.15 Key Data Points Market Cap $5.8B Day's Range $ 8.93 - $ 9.38 52wk Range $ 8.55 - $ 21.88 Volume 44M Avg Vol 26M Gross Margin 86.68 % Dividend Yield 10.27 % Blue Owl Capital (OWL +4.45%), a specialty finance firm that’s struggled as private-credit funds have come under scrutiny, closed Tuesday at $9.15, up 4.45%...
Expand NYSE : OWL Blue Owl Capital Today's Change ( 4.45 %) $ 0.39 Current Price $ 9.15 Key Data Points Market Cap $5.8B Day's Range $ 8.93 - $ 9.38 52wk Range $ 8.55 - $ 21.88 Volume 44M Avg Vol 26M Gross Margin 86.68 % Dividend Yield 10.27 % Blue Owl Capital (OWL +4.45%), a specialty finance firm that’s struggled as private-credit funds have come under scrutiny, closed Tuesday at $9.15, up 4.45%. There was no clear driver for today’s gains, though wider sector gains could reflect a shift in sentiment. Trading volume reached 41.8 million shares, coming in about 57% above its three-month average of 26.6 million shares. Blue Owl Capital IPO'd in 2020 and has fallen 15% since going public. How the markets moved today The S&P 500 (^GSPC +0.25%) added 0.25% to finish Tuesday at 6,716, while the Nasdaq Composite (^IXIC +0.47%) climbed 0.47% to close at 22,480. Within alternative asset management, industry peers Ares Management (ARES +6.68%) closed up 6.57% at $105.67 Blackstone (BX +4.42%) gained 4.56% to finish at $112.00, reflecting broad strength across the group. What this means for investors Blue Owl Capital pared some of its gains today, but the stock has still dropped over 50% in the past year. A combination of intensifying private credit fears and the firm’s focus on software stocks has weighed heavily on its price. Today’s shift comes alongside peer gains, suggesting investors may think the sector is oversold. Other drivers could include the firm’s push into other sectors -- Blue Owl Capital recently lent $550 million to life-sciences firm, Scholar Rock (SRRK +1.12%). Plus, earlier this month, Oppenheimer reiterated its “outperform” rating on the stock. Even so, investors remain cautious. As private credit comes under stress and fund managers, including Blue Owl, restrict redemptions on certain funds, this storm may not be over.
Nvidia is restarting the production of one of the company’s chips that is designed to comply with US export restrictions on China, CEO Jensen Huang said at a press conference on Tuesday. The company had halted manufacturing last year of its H200 chip, which is based on its ageing Hopper technology, because of increasing regulatory hurdles in the US and China, according to a report at the time. S...
Nvidia is restarting the production of one of the company’s chips that is designed to comply with US export restrictions on China, CEO Jensen Huang said at a press conference on Tuesday. The company had halted manufacturing last year of its H200 chip, which is based on its ageing Hopper technology, because of increasing regulatory hurdles in the US and China, according to a report at the time. Since then, Nvidia has received licences to export the H200 from the US government and has taken orders, Huang said. This led Nvidia to begin restarting its manufacturing several weeks ago. Advertisement “Our supply chain is getting fired up,” Huang said. The China chip sales are not included in the forecast for more than US$1 trillion in revenue that Huang made for the company’s Blackwell and Rubin AI chips by the end of 2027. Advertisement Blackwell and Rubin are Nvidia’s flagship AI chips and are capable of building the large language models that underpin chatbots such as OpenAI’s ChatGPT.
Nebius Group NV is trading like the math still hasn't caught up to the story: roughly $46 billion in marquee AI infrastructure deals against a market cap just above $28 billion. The $27 Billion Meta Pact Meta Platforms, Inc. has agreed to spend up to $27 billion over five years on Nebius AI infrastructure, one of the largest single AI cloud commitments in the market. The deal, announced Monday, in...
Nebius Group NV is trading like the math still hasn't caught up to the story: roughly $46 billion in marquee AI infrastructure deals against a market cap just above $28 billion. The $27 Billion Meta Pact Meta Platforms, Inc. has agreed to spend up to $27 billion over five years on Nebius AI infrastructure, one of the largest single AI cloud commitments in the market. The deal, announced Monday, includes $12 billion of dedicated capacity beginning in 2027 and up to $15 billion in additional on‑demand capacity as Meta races to scale frontier models on Nvidia-powered "AI factories." Don't Miss: For Nebius, this is locked-in hyperscaler demand that underwrites a massive build-out of next-gen data centers. The $17 Billion Microsoft Agreement Before Meta, Microsoft Corp. had already validated Nebius with a five-year AI infrastructure contract worth about $17.4 billion. Certain options could lift the total closer to $19.4 billion. Nebius will supply GPU capacity from its Vineland, New Jersey, facility, alleviating bottlenecks for Microsoft in AI compute without adding to its own capex. CEO Arkady Volozh has framed the Microsoft deal as central to Nebius' core AI cloud model, providing long-duration, highly visible revenue to fuel expansion into 2026 and beyond. Trending: Own the Characters, Not Just the Content: Inside a Fast-Growing Pre-IPO IP Company Nvidia's $2 Billion Strategic Bet Then Nvidia stepped in with a $2 billion equity investment and deep technical alliance, sending NBIS shares sharply higher. The partnership gives Nebius early access to Rubin-generation platforms, Vera CPUs, and BlueField systems. It also targets more than 5 gigawatts of Nvidia-powered capacity by 2030, effectively positioning Nebius as a flagship "neocloud" for the agentic AI era. Do The Math Put together, Nebius has roughly $46 billion of contracted or potential deal value from Meta, Microsoft, and Nvidia. Hold that against a public equity value of about $28 billion. These are multi‑year, ...
Bodo/Glimt's dream run in this season's Champions League may be over, but they bow out with heads held high having made history. Playing their football in often freezing conditions in a town located just north of the Arctic circle, the Norwegians surprised many by reaching the knockout stage on their debut in the competition. They claimed some impressive scalps along the way - beating Manchester C...
Bodo/Glimt's dream run in this season's Champions League may be over, but they bow out with heads held high having made history. Playing their football in often freezing conditions in a town located just north of the Arctic circle, the Norwegians surprised many by reaching the knockout stage on their debut in the competition. They claimed some impressive scalps along the way - beating Manchester City and Atletico Madrid in the league phase before winning both legs against last season's finalists Inter Milan in the knockout play-offs. But after winning their last-16 first leg match against Sporting 3-0 in Norway, the Portuguese side produced one of the great Champions League comebacks to win 5-0 at home and progress 5-3 on aggregate. "We did not play the game, we played the occasion, and it became far too big for us," said Bodo/Glimt boss Kjetil Knutsen. "Sporting CP went out there and didn't care about anything, while we were thinking about the consequences from the very first touch."
Key players in the world of artificial intelligence (AI) infrastructure have reached an important point in their growth story. To meet the immense demand in the AI market, they must invest. Amazon, Alphabet, Microsoft, and Meta Platforms together pledged nearly $700 billion this year in capital expenditures to support their AI infrastructure buildouts. This puts the industry on track to meet an Nv...
Key players in the world of artificial intelligence (AI) infrastructure have reached an important point in their growth story. To meet the immense demand in the AI market, they must invest. Amazon, Alphabet, Microsoft, and Meta Platforms together pledged nearly $700 billion this year in capital expenditures to support their AI infrastructure buildouts. This puts the industry on track to meet an Nvidia prediction. Last year, the chip giant said AI spending on infrastructure may reach $4 trillion by the end of the decade. Oracle (ORCL 0.86%) is the latest to speak about its AI efforts, and the software and cloud giant isn't shy about its ambitions. The company already is generating spectacular growth thanks to AI demand -- and aims to keep this AI growth going. To do so, the company announced a $50 billion AI bet that could either be the company's masterstroke -- or its biggest mistake. Let's find out more. Oracle's role in AI You might know Oracle best for its database management dominance, but in recent years, the company has built out its cloud presence and has become a significant player here. This has led to AI growth, as customers seek capacity. The recent quarter is an excellent example of the momentum we've seen over the past few years. Oracle reported remaining performance obligations surged more than 300% to $553 billion -- these are contracts for which Oracle hasn't yet completed the services or booked revenue. And the company's multi-cloud database revenue soared more than 500%, while AI infrastructure revenue advanced more than 200%. Demand surpassed supply in both of these categories. Against this backdrop, Oracle plans to raise $50 billion to support the growth of its AI infrastructure -- so that it may serve the needs of AI customers. Is this a masterstroke or could this be Oracle's biggest mistake? Investors have worried about the idea of companies overspending on AI, and the risk that demand could falter. So far, though, the message from all major AI...
Key Points Oracle’s revenue has been soaring during the AI boom. The company, a database management specialist, has greatly expanded and become a significant cloud player. 10 stocks we like better than Oracle › Key players in the world of artificial intelligence (AI) infrastructure have reached an important point in their growth story. To meet the immense demand in the AI market, they must invest....
Key Points Oracle’s revenue has been soaring during the AI boom. The company, a database management specialist, has greatly expanded and become a significant cloud player. 10 stocks we like better than Oracle › Key players in the world of artificial intelligence (AI) infrastructure have reached an important point in their growth story. To meet the immense demand in the AI market, they must invest. Amazon, Alphabet, Microsoft, and Meta Platforms together pledged nearly $700 billion this year in capital expenditures to support their AI infrastructure buildouts. This puts the industry on track to meet an Nvidia prediction. Last year, the chip giant said AI spending on infrastructure may reach $4 trillion by the end of the decade. Oracle (NYSE: ORCL) is the latest to speak about its AI efforts, and the software and cloud giant isn't shy about its ambitions. The company already is generating spectacular growth thanks to AI demand -- and aims to keep this AI growth going. To do so, the company announced a $50 billion AI bet that could either be the company's masterstroke -- or its biggest mistake. Let's find out more. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » Oracle's role in AI You might know Oracle best for its database management dominance, but in recent years, the company has built out its cloud presence and has become a significant player here. This has led to AI growth, as customers seek capacity. The recent quarter is an excellent example of the momentum we've seen over the past few years. Oracle reported remaining performance obligations surged more than 300% to $553 billion -- these are contracts for which Oracle hasn't yet completed the services or booked revenue. And the company's multi-cloud database revenue soared more than 500%, while AI infrastructure revenue advanced more than 200%...
New Fortress Energy (NFE +5.50%) jumped as much as 33.9% on Monday before giving most of the gain away. Shares finished the day up just 5.5%. The embattled liquefied natural gas (LNG) company announced it has reached a deal with creditors that will see its mountain of debt slashed, keeping the company alive. But it comes at a steep cost. Today's wild swings came as investors reacted to the initial...
New Fortress Energy (NFE +5.50%) jumped as much as 33.9% on Monday before giving most of the gain away. Shares finished the day up just 5.5%. The embattled liquefied natural gas (LNG) company announced it has reached a deal with creditors that will see its mountain of debt slashed, keeping the company alive. But it comes at a steep cost. Today's wild swings came as investors reacted to the initial news, only to realize the deal's implications. Expand NASDAQ : NFE New Fortress Energy Today's Change ( 5.50 %) $ 0.06 Current Price $ 1.15 Key Data Points Market Cap $310M Day's Range $ 1.09 - $ 1.46 52wk Range $ 0.98 - $ 12.59 Volume 70M Avg Vol 9.9M Gross Margin 19.59 % How the NFE deal works The company will be split into two entities -- "NewNFE" and "BrazilCo." The latter will be held privately by New Fortress's creditors, while NewNFE remains publicly traded. BrazilCo is so named because it will own the entirety of New Fortress's Brazilian operations, leaving NewNFE with its operations in Jamaica, Puerto Rico, and Mexico. That will have major implications for NewNFE's bottom line -- New Fortress Energy's Brazil operations were a significant part of its earnings mix. Dilution is still a risk And while the deal did not wipe out common shareholders, they will be diluted to just 35% of the new company. Its creditors will own the rest, as well as $2.5 billion in preferred shares. That means shareholders in NewNFE will face even more serious dilution risk. And the new entity still has to successfully turn the ship around, or it may find itself in a similar position a few years from now. This is not a stock I would own.
Key Points New Fortress Energy was able to negotiate with its creditors to save the company, but NFE will be forced to give up significant assets. The deal sees the company slash its corporate debt from $5.7 billion to $527.5 million. Existing shareholders will be diluted to 35% of the restructured company's common equity, with potential for further dilution from $2.5 billion in convertible prefer...
Key Points New Fortress Energy was able to negotiate with its creditors to save the company, but NFE will be forced to give up significant assets. The deal sees the company slash its corporate debt from $5.7 billion to $527.5 million. Existing shareholders will be diluted to 35% of the restructured company's common equity, with potential for further dilution from $2.5 billion in convertible preferred shares. 10 stocks we like better than New Fortress Energy › New Fortress Energy (NASDAQ: NFE) jumped as much as 33.9% on Monday before giving most of the gain away. Shares finished the day up just 5.5%. The embattled liquefied natural gas (LNG) company announced it has reached a deal with creditors that will see its mountain of debt slashed, keeping the company alive. But it comes at a steep cost. Today's wild swings came as investors reacted to the initial news, only to realize the deal's implications. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » How the NFE deal works The company will be split into two entities -- "NewNFE" and "BrazilCo." The latter will be held privately by New Fortress's creditors, while NewNFE remains publicly traded. BrazilCo is so named because it will own the entirety of New Fortress's Brazilian operations, leaving NewNFE with its operations in Jamaica, Puerto Rico, and Mexico. That will have major implications for NewNFE's bottom line -- New Fortress Energy's Brazil operations were a significant part of its earnings mix. Dilution is still a risk And while the deal did not wipe out common shareholders, they will be diluted to just 35% of the new company. Its creditors will own the rest, as well as $2.5 billion in preferred shares. That means shareholders in NewNFE will face even more serious dilution risk. And the new entity still has to successfully turn the ship around, o...
Gold was little changed, as investors weighed the Federal Reserve’s rate-cut path against inflationary risks from the war in the Middle East. Bullion held near $5,000 an ounce in early trading, having moved within a narrow range this week. While the Fed is expected to keep interest rates unchanged at its policy meeting later Wednesday, traders will scrutinize the US central bank’s views on rising ...
Gold was little changed, as investors weighed the Federal Reserve’s rate-cut path against inflationary risks from the war in the Middle East. Bullion held near $5,000 an ounce in early trading, having moved within a narrow range this week. While the Fed is expected to keep interest rates unchanged at its policy meeting later Wednesday, traders will scrutinize the US central bank’s views on rising energy prices and a softer labor market. Oil held gains , with the conflict now in its third week. Read More: Trump Ditches Appeal for Help in Iran War, Slamming Allies The US and Israel kept up attacks overnight, with Iran confirming the death of national security chief Ali Larijani. Israel said earlier he had been killed in an airstrike. Tehran continued to strike energy infrastructure in countries across the Persian Gulf region, and the Strait of Hormuz remained effectively closed to shipping. Spot gold edged down 0.1% to $5,001.79 an ounce at 6:23 a.m. in Singapore. Silver slipped 0.2% to $79.16. Platinum and palladium fell marginally. The Bloomberg Dollar Spot Index ended the previous session down 0.2%.
Iran expert says Trump's 'war of choice' has morphed into a 'war of necessity' toggle caption Majid Saeedi/Getty Images Europe Three weeks into the U.S. and Israel's war with Iran, it remains unclear how or when the conflict might end. When asked by a reporter on Sunday if he was ready to declare victory, President Trump responded, "no, I don't want to do that. There's no reason to." Karim Sadjadp...
Iran expert says Trump's 'war of choice' has morphed into a 'war of necessity' toggle caption Majid Saeedi/Getty Images Europe Three weeks into the U.S. and Israel's war with Iran, it remains unclear how or when the conflict might end. When asked by a reporter on Sunday if he was ready to declare victory, President Trump responded, "no, I don't want to do that. There's no reason to." Karim Sadjadpour, a senior fellow at the Carnegie Endowment for International Peace, says the president seems to have underestimated Iran's response to the war. Sadjadpour notes that Iran telegraphed from the beginning that it planned to regionalize the conflict. But, he says, "President Trump said that that took him by surprise when Iran started to attack the Persian Gulf countries or close down the Strait of Hormuz." Sponsor Message "I don't think President Trump, in his own words frankly, understood what he was getting into," he adds. Sadjadpour says the war with Iran began as what he calls a "war of choice" — meaning there was no imminent threat that Iran was about to acquire nuclear weapons or launch missile strikes on the U.S. or its partners. But the calculus has since changed. The Iranian government has effectively closed the Strait of Hormuz, a vital waterway through which approximately 20% of the world's crude oil and natural gas typically passes. In addition, it's unclear how much power Iran's newly appointed supreme leader, Mojtaba Khamenei, actually holds. Earlier today, Israel announced that it had killed Ali Larijani, the head of Iran's Supreme National Security Council. Larijani was expected to be a close adviser to Khamenei. "At a time when the regime's survival is at stake, Larijani's decades of domestic and foreign policy experience make his loss a significant blow," Sadjadpour reflects. "For a revolutionary regime whose political ideology is premised on martyrdom, the central question is whether these assassinations will ultimately extinguish the ideology or help rev...
O2O Creative/E+ via Getty Images With all the bombs falling lately, you would think that the US has a lot of tungsten in supply. After all, due to its exceptional hardness and super-high melting point (6192 F!), tungsten has been an irreplaceable element in virtually all weapon-making applications – from armor-piercing munitions and rocket nozzles to aerospace equipment and the industrial tools us...
O2O Creative/E+ via Getty Images With all the bombs falling lately, you would think that the US has a lot of tungsten in supply. After all, due to its exceptional hardness and super-high melting point (6192 F!), tungsten has been an irreplaceable element in virtually all weapon-making applications – from armor-piercing munitions and rocket nozzles to aerospace equipment and the industrial tools used to make them—since the WWI. But you would be incorrect. The US hasn’t had an active tungsten mine in over 11 years . In fact, the PRC is responsible for 83% of the world’s tungsten production and has been the dominant player for decades. The $5.6 billion in ammunition the US expended in the first two days of the Iran War? All that tungsten probably came from China, one of Tehran’s primary backers and an official “ strategic partner. ” The irony is not lost on anyone. This total reliance on a single foreign supplier for the metal essential to most defense systems has put the US in a precarious position. It is also something that Beijing has taken recent action to rectify. The Set Up In February 2025, Beijing implemented strict export controls and licensing regarding tungsten, which became classified as a “dual use,” civilian/military material. This restriction has caused a 70% decrease in export volumes, which in turn has spiked global prices. It even showed up in the monthly numbers: according to Global Trade Tracker, exports of ammonium paratungstate ( APT ) from China were 103 tons in January 2025; dropped to 20 in Feb..; fell to 0 in March, April, May; only to climb back to 40-41 tons in June and July. Relative to 2021, 2025 volumes have been cut in half. These "jurisdictional actions" are to be officially tightened further in 2026-2027, and though they are not total bans they operate under the shadow of that cagey, inert legalism often employed in China over its three thousand year history. The US has responded to this in three ways. The Defense Logistics Agency (DLA...
Tesla (TSLA +0.94%) investors have had their pick of bad news and headlines to dwell on, there are plenty of options. CEO Elon Musk has rubbed some consumers the wrong way with politics, the automaker's limited product portfolio is aging and conceding market share, and Chinese rival BYD Company has overtaken Tesla in global EV sales and recently announced 11 new models are on the way, among many o...
Tesla (TSLA +0.94%) investors have had their pick of bad news and headlines to dwell on, there are plenty of options. CEO Elon Musk has rubbed some consumers the wrong way with politics, the automaker's limited product portfolio is aging and conceding market share, and Chinese rival BYD Company has overtaken Tesla in global EV sales and recently announced 11 new models are on the way, among many others. At first glance, Tesla announcing it would discontinue production of the Model S and X during the second quarter, which ends June 30, might sound devastating considering it sells only five vehicle models. But let's take a deep breath, take a look at some data, and then pinpoint what should actually concern investors. Natural obsolescence The definition of the phrase above is the process by which a product becomes less useful, out of date, or unavailable over time due to technological advancements or environmental conditions. Tesla's Model S and X are an example of natural obsolescence where the electric vehicle (EV) industry has made rapid advancements in recent years to improve performance and range all while lowering costs and building scale. The simple truth is that the Model S and X served their purpose, and are now outdated on a number of different levels. To Tesla, the two models have been largely irrelevant to global deliveries for years now -- essentially since the Model Y hit the roads. Tesla calls it an honorable discharge, and that's fair, but the truth is the Model S and X needed replacing. This is where it gets interesting for Tesla investors, because rather than replacing the outgoing vehicles with newer more competitive models, the automaker is not just shifting gears, it's shifting its entire business vision. "Tesla formalized its ambitious new direction: The company is burning the boats, pinning its future on autonomous cars and robots," Piper Sandler said after the earnings call Jan. 28, according to Automotive News. Tesla plans to take production c...