Michael Nierenberg: I think we’re going to be — well, here’s what I would say. Our approach, and this goes back to when the company was first formed at Fortress has always been to be more opportunistic investors rather than just being an investor to deploy capital to do that. Including our capital formation when we would do an M&A deal, we would typically raise capital around M&A deals, not just to raise capital. So when you look at where we are going forward, let’s use the GreenBarn company. GreenBarn was formerly the old Normandy partners, and they rebranded to Senlac. They do redevelopment work in office here in office here in the Northeast and they have a very good footprint with a great track record that goes back, I think, to the mid-90.
David Welsh, who leads that business, a great guy and a great operator. That’s a good example of something that will be grown strategically over time, and we like to allocate more capital then. We’ll probably — we’ll also use either capital from the balance sheet and third-party funds to grow that business. MSRs, as I pointed out, we have $600 billion. We can go out and buy another X hundreds of billions, but we want to make sure the risk adjusted returns are something that warrant either growing that or if you thought about it, if your last dollar of capital was X, where would you put that money? We like the Genesis business a lot. I think at some point, you’ll see some consumer companies come out towards the end of the year from folks in the private equity business that have some of these.
So that could be an opportunity for growth. We’re seeing some other opportunities around MH and other things. So it depends, but it’s really going to be more opportunistically across the board, not just to grow a certain sector that we’re in. The one thing I want to be clear to everybody on the phone and others that will listen to this is that we will always stay true to our core competency, which is financial services. So even on the funds that we’re raising, we are going to stay whether it be in the commercial space, residential space, consumer space, everywhere where we have experience or have the teams that have experience, that’s where we’re going to deploy capital. So it’s going to be more opportunistic where we think we could generate what I would call teens type returns.
And if you look at our track record going back to 2013 in our core business, our real returns are probably in and around 12% on a return on equity basis while paying a $4.5 billion of dividends.
Stephen Laws: Great. Thanks Michael.
Michael Nierenberg: Thank you.
Operator: The next question comes from Trevor Cranston with JMP Securities. Please go ahead.
Trevor Cranston: Thanks. Good morning.
Michael Nierenberg: Good morning.
Trevor Cranston: Just one more question on the origination segment. You guys have, obviously, done a lot to reduce the expense level of the company over the course of the year. Would you say that the run rate numbers you show on slide 12 for expenses, is that kind of fully reflective of everything you’ve done, or are there any actions you’ve taken that are still able to show up in the Q4 expense numbers for originations?
Nick Santoro: I would say that’s fully reflective of what we’ve done. And go-forward reactions are actions are not going to be material.
