"What feels good can be different from what looks good"

I enjoyed a long, interesting and rewarding career as an institutional real estate investor. Recognized by Columbia Business School as the Real Estate Merit Scholar and 25th Reunion Chairperson for my MBA class, I share credit for developing investment strategies that reshaped the real estate industry; raised billions from coveted institutional investors; led or approved billions in investment decisions around the globe; authored white papers; spoke at conferences; received accolades...

It was a fantastic ride! The LinkedIn and Wiki links atop this page offer some views into my career and business.

Way back in college, I had a buddy named Dan, a clean, well-dressed, good looking guy who kept himself very lean. I'd say he weighed 150 pounds tops. The girls he dated, however, were quite chubby, often tipping the scale at well over 200. When I asked why he was attracted to much larger women, he explained that they felt better to him, even though he thought slender women looked prettier.

I learned it can be the same with investors. What feels good--strong investment performance--can be perceived differently versus what looks good--solid investor reporting. I know this because my firm's investors often referred to my firm as "performance heavy, reporting light". This was an appreciated compliment regarding my investment skills. No matter how many people were added or how much was spent on reporting, though, my firm's reporting team could never satisfy our investors. 

Ultimately, it caught up with us. We made an investment that was nominated best deal of the year. It was the largest deal of its kind for ten years. Its size, quality and uniqueness attracted the world’s largest investors. It made my firm the market leader, and survived the global financial crisis when many others' investments failed. The investors paid below-market fees for all of our services. All good, right?

Nope! Years after I decided to retire and closed my firm, we were accused of a reporting deficiency dating back to the start and ending with a report I wrote in our reporting team's absence. The fact that we out-performed our competitors did not seem to matter. Our team's reporting was deemed insufficient, our investors used that as leverage to drive our fees down, and the government took its pound of flesh, too.

All based on accusations that were never brought to court or otherwise proven.

Evidently, a job well done--the true tale of investment success--is not enough. Reporting--how things may be perceived--can matter more, even when reporting differently may not have changed a thing. Has perception become reality in the  investment world? G-d help us!

Thanks to the Securities and Exchange Commission (SEC), not only for taking a hard stance on widespread investment industry fraud, but also for its more mindful approach to the press in recent years.

And rest in peace, Peter Lewis. Ever the poet, Peter ended his life in 2013—one year to the day after being fired by one of our investors. As the most experienced, informed and outspoken of the investors' representatives, Peter would have been uniquely qualified to help all parties resolve their differences in better form. The industry suffers the loss of his wit, insight and leadership, and I miss Peter's brilliant banter to this day. 

Note: Nothing here is intended to admit or deny the "findings" in the investigative order as per its terms.