Thursday, 24 July 2014
Last updated 52 sec ago
Aug 14 2007 | 1:36pm ET
Fortress Investment Group posted another loss in the second quarter, making the hedge fund and private equity giant—the first U.S. alternatives firm to go public—0-for-2 as a public company.
Fortress said it lost $55 million in the second quarter, 31% higher than the year-earlier loss of $42 million. But it was substantially lower than its first quarter loss—its first result as a public company—of $71.8 million.
But while Fortress stock—down more than 8% in midday trading on Tuesday—may be a bad investment, investors think otherwise about its hedge and p.e. funds: The firm’s assets under management soared 20% to $43.3 billion from the end of the first quarter. Its revenue rose with the assets, jumping 50% from the year-earlier period to $283 million, thanks mostly to its hedge fund products, where revenue for liquid funds soared to $151 million from $38 million a year earlier.
Its p.e. business, on the other hand, contributed to the profit decline: P.E. revenue dropped by 63% to $36 million.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…