Keith McCullough Calls Out Steve Schwarzman $BREIT
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In this clip from The Macro Show, Keith McCullough pulls no punches responding to a subscriber who has money stuck in Blackstone’s BREIT and issues a challenge to Blackstone CEO Steve Schwarzman.
Blackstone blocked withdrawals from its $70 billion real estate income trust again last month, as it faced a flurry of redemption requests. BREIT allowed about $666 million to be withdrawn (roughly 15% of what was requested) of the $4.5 billion in total redemption requests for the month.
Blackstone has been exercising its right to block investor withdrawals from BREIT since November after requests exceeded a preset 5% of the net asset value of the fund.
“If Steve’s only going to give you 15 cents on the dollar, then Short the other side,” McCullough explains. “Steve, you would say that’s probably a good piece of risk management advice, wouldn’t you?”
You don’t have to look far to find real estate securities worth shorting right now. Sadly, companies like Blackstone seem to have the capital to fund their own businesses, but not investors’ redemptions.
“It’s nothing personal, Steve. You don’t want to give people all their money back after you told them they could,” McCullough explains. “If you want to talk about it on Hedgeye TV, I’d be happy to do it.”