High-risk alts burn client in $1.2 million arbitration
By: Bruce Kelly, Investment News (May 2024)
Bruce Kelly's "High-risk alts burn client in $1.2 million arbitration" reports on a $1.2 million FINRA award against Concourse Financial Group Securities for its recommending and misrepresenting of high-risk private, illiquid and alternative investments and equity indexed annuities. The article quotes Dr. McCann, who testified in the case, describing the investments as "the worst or just about the worst portfolio I have ever seen."
The Big Questions Hanging Over a Blackstone Fund
By: Andrew Ross Sorkin, Ravi Mattu, Bernhard Warner, Sarah Kessler, Michael J. de la Merced, Lauren Hirsch and Ephrat Livni, The New York Times (May 2024)
The New York Times' "The Big Questions Hanging Over a Blackstone Fund" details concerns over the valuation of Blackstone's real estate fund in its impressive performance while rivals struggle with high interest rates and a flagging property market. The article raises questions about Blackstone's independent review of its third-party appraisal values, differing from many major firms that defer entirely to third-party appraisers. The approach has split Wall Street, and the article quotes Dr. McCann on his reservations towards Blackstone's independent review process.
Commissions exposed, adviser stops selling nontraded REITs
By: Ann Marsh, FinancialPlanning.com (Jun 2016)
Ann Marsh's "Commissions exposed, adviser stops selling nontraded REITs" in FinancialPlanning.com discusses SLCG's non-traded REIT research. The article illustrates how disclosing commissions and their impact on the purchase date value of a nontraded REITs helps disinfect this odious business.
Non-traded REITs cost investors $50 billion: consultant
By: Ross Kerber, Suzanne Barlyn, Reuters (Jun 2015)
Ross Kerber and Suzanne Barlyn's "Non-traded REITs cost investors $50 billion: consultant" reports the result of SLCG's non-traded REIT research. In "An Empirical Analysis of Non-Traded REITs", Brian Henderson, Joshua Mallett, and Craig McCann found that the non-traded REIT industry has transferred at least $45.5 billion in wealth from investors to sponsors and the brokerage industry. The first 41 non-traded REITs had cost investors $25.5 billion in lost wealth and 40 additional non-traded REITs which had updated their NAVs had cost investors another $20 billion in lost wealth. In "Fiduciary Duties and Non-traded REITs", Craig McCann points out that no advisor with fiduciary duties could recommend a non-traded REIT.
The Growth of Non-traded REITs
By: Bloomberg TV (Dec 2014)
SLCG's non-traded REIT research is cited in Deirdre Bolton's interview of Bob Rice of Tangent Capital Partners on the growth of illiquid, high-cost non-traded REITs.
The non-traded REIT fees discussed in the Bloomberg TV segment is excerpted from Table 2 in our "A Primer on Non-Traded REITs and other Alternative Real Estate Investments".
Nontraded REITs Are Hot, But Have Plenty of Critics
By: Robbie Whelan, The Wall Street Journal (Jun 2014)
Robbie Whelan's "Nontraded REITS are Hot, But Have Plenty of Critics" reports on the issues with nontraded REITS. The article quotes Dr. McCann on the problematic issues surrounding nontraded REITS.
