New Residential CEO Michael Nierenberg, Formerly of Bear Stearns, Shares How to Be a Successful Investment Manager

Michael Nierenberg, who is now the CEO of New Residential Investment Corp., is a well-respected professional in his industry. He’s often recognized for its innovative insights in investing, many of which have helped to make him the success he’s become. Over the years, he’s worked with numerous notable companies throughout the U.S. That experience has made him one of the leading investment managers in the industry, including having worked with Bear Stearns.

As an industry recognized leader, Michael Nierenberg, his insights into investment banking have commonly been featured in both online and offline publications pieces, often noting his successes both with Bear Stearns and in other career positions. Not only do they talk about his successes as an investment decision making, but as a manager. Papers have been published about his beliefs and philosophies of how to be success in in this career.

Understanding Nierenberg’s Views as a Successful Investment Manager

There are many things that make Nierenberg a unique investment manager. One of the reasons he’s done well is because he’s worked in a variety of companies throughout the country, giving him more insight into operations and helping him learn what works best. He’s unique in both how he views the future of the investment world and how he approaches every transaction.

His long history of accomplishments started back when he graduated from college. He graduated from Amherst College and obtained a doctoral degree, studying mortgage-backed securities specifically. From there, he went on to work with a cancer research foundation, and then, taking the first step into the investment management position, he worked with Lehman Brothers. There, he was an important part of the adjustable-rate mortgage division in the company, allowing the company to perform well in this area.

In 1994, he became a member of the board of Bear Stearns, one of the most recognized players in the financial industry. He worked in various roles in the company starting from the ground and working his way up to Board members. He was the co-head of the structured products division of the company and later worked as in the lead position of the interest rate and foreign exchange trading divisions. Finally, in 2006, he moved into a notable senior leadership role as a Board member.

Seeking an ongoing level of experience and new opportunities, he moved to work at J.P. Morgan, where he worked on the management committee. By 2008, he was working as the head of the global mortgages and securitized products division of Bank of America/Merrill Lynch.

In 2013, he became the CEO of New Residential Investment Corp. He then moved to the Chairman of the Board position in 2016. The company is based in New York City. It is a publicly traded company (trading under the New York Stock Exchange as NRZ).

A Foundation of Education

One of the ways Nierenberg has been so successful as an investment manager is that he focused a lot of his attention and efforts on educating his clients about their choices. One area of focus for him, though the years, was real estate investment trusts, or REITs. This investment vehicle is one of the more preferred options for many because it can be very versatile allowing for investments in residential or commercial properties, providing investors with a range of investment opportunities.

REITs have long been a popular option. The housing market has grown to $25 trillion in value over the last 20 years, creating opportunities for this investment vehicle. Nierenberg encourages individuals to learn about this industry and, as needed, to work with a skilled advisory team to enable learning as much as you can not only about the investment but also the industry you are investing in – before moving forward.

Because finding the right balance of investments is difficult for most people, the use of a skilled advisory service like this with insights into REITs or other strategies can offer some relief. Nierenberg recommends working with only professionals who understand the nuances of REITs and their investment choices. This allows them to remain up to date on emerging financial concepts and trends.

Three Pillars That Create Success

Over the years, Nierenberg has learned a great deal about the industry but also about working with others and thriving. Many things have contributed to his success over the years including his vast experience in the markets in general. It’s helped him redefine the success he’s had in investing through numerous strategies. He says he has three pillars of success that are important for all investors to recognize.

#1: Value Teamwork

One of the most important components of his success comes from his belief in teamwork. He believes not enough people and companies make teamwork a priority for their management firm and that this is a mistake. Over his career, he’s worked with many people and in each case, teamwork has helped to create success.

He believes teamwork is critical to capitalizing on the investment industry. It is not something you just know how to do, but it is something you can learn, he believes. He loves working with people of all different talents who are striving to achieve a single goal.

#2: Productivity

Being efficient in everything that is done is critical. Nierenberg believes a company should focus on productivity including the way it uses its resources – all types of resources. Often, a large amount of any profit will go to the operational costs. That’s why it is so important for the workforce in that company to be efficient and productive in everything they do. When everyone has an attitude of productivity, it improves the company and boosts self-esteem for workers. That helps to make job satisfaction possible. In turn, that works to reduce employee turnover. Workers who have been around longer are likely to have higher productivity. That’s why he strongly believes productivity is a key pillar to success when managing employees.

#3: Diversification

The third pillar of Nierenberg’s philosophy is to focus on diversification. It helps to promote success in the investing world. Diversity helps companies to gain more in profits across a wider range of sectors, providing more opportunities and increasing growth. It is an important part of every business’s strategy to minimize financial losses as well.  This, Nierenberg says, is important to ensuring long-term success.

Diversification – put into action in a business – can lead the company to grow without drastic dips on growth due to changing economic cycles or fears. It is a valuable component of an overall winning strategy. Diversification, along with the other strategies he has developed, is what has helped him do so well across all of the firms he’s worked with and in his current position.

Michael Nierenberg’s ability to learn from his mistakes, lead in a positive way, and gain insights into operational strategies makes him a highly desirable professional to work within the industry. He has been a long-term benefit to the company’s he’s worked with. From his time at Bear Stearns to his most recent efforts at New Residential Investment Corp., Nierenberg is the type of leader many in the field need to have.