Activist Investor Employs Hitler Video and Legal Threats

NEW YORK (TheStreet) -- An investor in Altisource Residential Corp. (RESI) who is shorting shares of Altisource Asset Management (AAMC), published a report Wednesday accusing the two companies of a conflict and threatening legal action.

"We believe that AAMC's Incentive Fee is at least four to seven times higher than the compensation received by similarly situated asset managers, and as such, is a sweetheart deal that will unjustly enrich insiders with a beneficial stake in AAMC at the expense of RESI's shareholders," states the 27 page report from Glaucus Research Group. The bold letters in this quote and subsequent ones are reproduced from the report, which is really more of a campaign. In an especially bizarre move for a company threatening a lawsuit, Glaucus makes use of the ubiquitous Hitler video to poke fun at itself.

Bill Erbey, who is the Chairman of both companies, as well as Ocwen Financial  (OCN), Altisource Portfolio Solutions  (ASPS) and Home Loan Servicing Solutions (HLSS), responded via email that "we do not comment on alleged lawsuits."

The report, which kicks off with a quote from Game of Thrones ("Winter is coming") states that "as shareholders of RESI, we believe that RESI's independent directors have a fiduciary duty to either terminate or substantially renegotiate its asset management agreement with AAMC. We expect to sue RESI's independent directors for violating their fiduciary duty of loyalty to RESI's shareholders unless they address the lopsided compensation deal given to AAMC."

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