Friday, 29 August 2014
Last updated 2 hours ago
Aug 4 2011 | 1:40pm ET
Possibly seeking to sweeten an otherwise unfortunate set of quarterly results, Fortress Investment Group said today that it would pay it's first dividend in three years.
Fortress said it would reinstate the dividend in the fourth quarter and has struck new contracts with its key principals.
"Our dividend reinstatement reflects the board's confidence in the financial strength and earnings power of our company, and I am pleased that we are able to reward shareholders for their investment," CEO Daniel Mudd said. "Our new principals agreement ensures that Fortress will continue to benefit from the contributions and leadership of those who founded and built the company."
Despite those happy words, the was little to cheer about at Fortress headquarters in New York. The publicly-listed alternative investments giant suffered a 13% drop in revenue as its major hedge funds all lost significant ground in the second quarter. Fortress' second-quarter loss was $94.5 million, worse both than analysts' expectations and its year-earlier loss of $92.5 million.
Indeed, there was little to cheer about at all for Fortress: Revenue dropped to $151 million, fee income dropped $23 million, hurt by its credit private equity funds and liquid hedge funds, and flagship Macro Fund fell 5.4%.
Other hedge funds did no better: Drawbridge Global Macro lost 6% on the quarter and its Commodities Fund 6.4%. The lot of them were down between 4.1% and 5.7% through July, although Fortress' Asia fund offered a bright spot, up 3% on the year.
Assets under management also provided a bit of a boost, rising by $700 million in the second quarter to $43.8 billion.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...