Monday, 31 August 2015
Last updated 2 days ago
Feb 29 2012 | 4:32am ET
Last year ended with a thud for Fortress Investment Group.
The alternative investments giant said the fourth quarter of 2011 was bad just about all around. Distributable profit plummeted 60% as hedge fund fees dried up, with earnings missing analysts' expectations.
Fortress' pretax distributable earnings for the last three months of last year were $50 million, down from $125 million in the fourth quarter of 2010. The firm placed most of the blame on its credit hedge fund business, which saw its distributable earnings fall by more than 70%, from $32 million to just $9 million.
Distributable earnings from fund manager dropped 29% to $253 million.
Including compensation costs and other charges excluded from distributable earnings, the picture is even bleaker, with the firm's quarterly loss yawning to $91 million from $13 million.
Fortress said its assets under management fell 2% in 2011.
Despite all of the bad news, Fortress did announce a 5 cent per share dividend.
May 27 2015 | 2:15pm ET
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