NOVC investment is better cap gains, NRZ better for dividend at ordinary income. Thomas Akin (largest shareholder in DX, IMF and NOVC) bought into NOVC when his pal and co Director at DX Barry Igdaloff and large DX investor Howard Amster joined NOVC Board 2010 same yr Fortress took control of Sr Debt by buying CDO Service Rights on all 8 Taberna CDOs $15.9M Taberna I and II own 67% of NOVC Sr Debt. They just took NOVC in and out of Ch 11 Fortress controlled Creditors Committee and Igdaloff controlled Debtor - that is different story. Prior CEO was milking NOVC Lance Anderson and I call Igdaloff and recruited Chuck Gillman/Jeff Eberwein ex Soros PM who ousted Anderson and Gregory Barmore + two other board members (shills for Barmore). To my surprise Igdaloff has enriched himself as has Gillman and Eberwein (3 of 5 new Board Members at NOVC are David Pointer, CEO and Howard Eriksen, Lee Kidde and have known Gillman and Eberwein for 20 yrs. The other two board members are Igdaloff and Amster that know Wesley Edens and Peter Briger). I see NRZ like RWT it will pay a good dividend and over time you get a chance to either make a little money or get out whole + dividends. Fortress is NRZ. Fortress Wesley Edens, COB and his Partner Peter Briger I believe are in sync with Mass Mutual Barings at NOVC and their pals Jeff Eberwein ex G Soros, Thomas Akin x Merrill Lynch, x DX COB and largest shareholder in IMH, Barry Igdaloff and Howard Amster ex DX investors and board members and NOVC Board members. Matter of time before Fortress & Mass Mutual Barings (Thomas Finke) takes control of NOVC and makes billions on NOVC like they did recently at OMF Fortress sold 40% interest in OMF to Apollo Global Mgt and Fortress sold 68% interest in NationStar NSM sale to COOP/WMIH (17% owned by KKR). Investors in NOVC can turn $10k into $8M and pay taxes at cap gains rates & maybe even offset some of the losses many incurred during the financial meltdown and tech bubble burst or collect a fair dividend from NRZ and pay ordinary income tax.
Disclosure: I am/we are long NOVC.