- Blackwells Capital LLC, an alternative investment management firm, calls on Colony Credit Real Estate (NYSE:CLNC) to replace its Colony Capital-provided investment team rather than "internalize" it as proposed by Colony Capital Chairman and CEO Tom Barrack.
- Blackwells, which holds shares in CLNC, points out that "investors have lost confidence in this team and the stock now trades at a significant discount to book value, while public peers trade at a premium" in an open letter to the company's board.
- “Under the leadership of CEO Kevin Traenkle and Colony Capital Executive Chairman Tom Barrack, Colony Credit has repeatedly written down its assets and cut its dividend dramatically," the letter notes.
- Blackwells Capital is also a shareholder of Colony Capital (NYSE:CLNY), which owns 37% of Colony Credit.
- In the past six months, CLNC has declined 13% vs. the financial sector's median performance of +7.1% during the same period.
- Previously: Colony Credit Q3 reflects portfolio split, dividend cut (Nov. 7)
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