×

CNBC Exclusive: CNBC’s Michelle Caruso-Cabrera Interviews Marc Lasry & Barry Sternlicht from CNBC Institutional Investor Delivering Alpha Conference

WHEN: Today, Tuesday, September 13th

Following are excerpts from the unofficial transcript of a CNBC EXCLUSIVE interview with Marc Lasry, Avenue Capital Group Chairman, CEO and Co-Founder, and Barry Sternlicht, Starwood Capital Group Chairman and CEO, live from the CNBC Institutional Investor Delivering Alpha conference in New York City on Tuesday, September 13th.

Mandatory credit: CNBC Institutional Investor Delivering Alpha conference.

BARRY STERNLICHT ON ETFS ALGO TRADING

Those are fast you get your money in and out, influences stocks in a way you didn't have to deal with 5, 10 years ago. For volatile money, you can be right and wrong and it has nothing to do with your thesis - it could be dead right but your investors might flee before you can be proven correct.

BARRY STERNLICHT ON REAL ESTATE

Because of BREXIT Dublin's hot, we're selling now much earlier than expected because all the good news is in the price. Bought a building in Manchester, investor bought it before our 5-year exit. That's all because half their money was in bonds and there's no yield in bonds. All this money is moving into real estate. Our asset class happens to be a good asset class right now

MARC LASRY ON DEBT INVESTING VS. EQUITY

Interest rates are where they are yet you need to continue to invest. That's why you want to be a debt investor or an equity investor. Being an equity investor right now isn't great.

BARRY STERNLICHT BULLISH ON REAL ESTATE

The part of the economy that is roaring ahead that people aren't paying attention to is the residential sector. It's been part of every recovery in history and has not participated in this recovery. The residential markets are really good..best we've ever seen in our lives. the millennials are a sharing generation. Fundamental changes to demographics in the country. It's really playing out in the rental markets.

BARRY STERNLICHT ON BEST AND WORST REAL ESTATE MARKETS

NYC is weak, too much building, too many apartments coming online. San Francisco is getting overbuilt. Our assets our in Seattle, Denver, South Florida, Dallas is cooking ASS, Atlanta is amazing. I've never seen an Atlanta market like this.

BARRY STERNLICHT ON TECH INVESTMENT

There's this company called Doppler Labs, they make a programmable earplug. Because of what Apple just did like 7 people are looking to buy them.

MARC LASRY AND BARRY STERNLICHT ON TESLA

Michelle Caruso-Cabrera: Would you invest in Tesla?

Sternlicht: No, I would be short actually.

Lasry: Tesla? No, I wouldn't invest. It's hard for people who invest in companies at 5X to invest in companies that are greater than 20 or 30 or 100X. It's just not in my DNA. To me it just doesn't make any sense.

MARC LASRY ON BOND MARKET LIQUIDITY

Very little liquidity, when there's bad news there's no liquidity. When there's bad news you want to be the person giving those bids. Bond market today ends up being, once banks got out, only people providing liquidity are people like me. You'll always be giving a down bid

BARRY STERNLICHT ON BREXIT

I think businesses will leave London if they do this yes. it's not going to be pretty. Banks will lose money, hedge funds, it's not going to be pretty.

MARC LASRY ON HILLARY CLINTON

Person I know is an exceptionally talented individual and I think she will make a great President. You want someone who asks questions, who cares, and you want someone who is really smart.

BARRY STERNLICHT ON ELECTIONS

I was hoping everyone would get indicted and we'd get to start over.

About CNBC:

With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD, CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to approximately 386 million homes worldwide, including more than 100 million households in the United States and Canada. CNBC also provides daily business updates to 400 million households across China. The network's 15 live hours a day of business programming in North America (weekdays from 4:00 a.m. - 7:00 p.m. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. CNBC at night features a mix of new reality programming, CNBC's highly successful series produced exclusively for CNBC and a number of distinctive in-house documentaries.

CNBC also has a vast portfolio of digital products which deliver real-time financial market news and information across a variety of platforms including: CNBC.com; CNBC PRO, the premium, integrated desktop/mobile service that provides live access to CNBC programming, exclusive video content and global market data and analysis; a suite of CNBC mobile products including the CNBC Apps for iOS, Android and Windows devices; and additional products such as the CNBC App for the Apple Watch and Apple TV.

Members of the media can receive more information about CNBC and its programming on the NBCUniversal Media Village Web site at http://www.nbcumv.com/programming/cnbc.

For more information about NBCUniversal, please visit http://www.NBCUniversal.com.