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Posts from the ‘Arbor Realty (ABR)’ Category

Leon Cooperman’s roadmap for Arbor Realty

I have to admit I don’t know a lot about Leon Cooperman, except that I see him on CNBC every once in a while and they make a big deal of that like he’s a heavy weight.  Nevertheless, this was enough of an introduction so that when I saw his name come up on the questioner list of Arbor Realty’s second quarter call, I took notice.

Cooperman distilled the idea behind Arbor with clarity.  I’ve reposted the most relevant comment below but I would recommend reading the entire exchange (available from Seeking Alpha):

Lee Cooperman – Omega Advisors

Most exciting thing you said this morning, I am trying to understand if I am correct in my understanding. I have been said that you thought you can get a mid-teens leverage return on capital. So, I am trying to forget the linkage of FFO to the mid-teens leverage return on capital. Let’s just say we use an average number, make it easy for you, $8 book value at a 15% return, would imply like $1.20 or so of ongoing earnings and I am curious whether that is a goal that you see as realistic. How that relates to FFO and do you have a timetable in mind for when that kind of profitability to be achieved. This is well above we’re currently earning. And secondly, does the access to the deferred market make it likely that we won’t have to resort to any equity financing, anytime in the foreseeable future?

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Week 91: Consolidating

Portfolio Performance



Patience is a difficult virtue. I’ve had 3 weeks of pretty so-so performance, some stocks going up and some stocks going down and overall not much of anything happening. With the market going up seemingly every day its hard to not let that play on your mind.

But you have to have a balance of patience and impatience to do well in stocks. You need to have a healthy level of impatience so that you don’t hold onto positions for too long, but tempered with an equal dose of patience because, as I read some time ago from a cagey market veteran, you will make 80% of your gains for a year in 2-3 weeks, and figuring out which weeks those are is nearly impossible.

In the last few weeks I think I demonstrated a little bit both; witness impatience in my selling of gold stocks and of my position in Tricon Capital and patience as I held on to falling positions in MBIA, Impac Mortgage and watched YRC Worldwide and Yellow Media correct substantially from their highs. Read more