Anyone following this drama? REIT stock that has been destroyed by hedge fund rumor of a Ponzi scheme. UDF is an alternative lender for homebuilders and land development companies that have pretty much been shunned by commercial lenders. Concept is decent, almost like a mezz lender the program itself makes sense. Problem is their holdings are very concentrated in oil sensitive employment areas (Texas) housing and land could ultimately suffer. Also the org chart was insanely complicated, I’m sure management is raking in a ton of fee income. They may have been hiding loan losses and lending to only a few companies. Also seems like there were a lot of shorts building up, with the HF rumors now breaking the back of the stock, rightly or wrongly.
Hard to tell if this goes to zero or if the allegations are overblown.