Fortress Profit Sinks As Dividend Returns

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.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.