Fortress Sinks In Second Quarter

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.


Lifestyle

Survey: Wall Street Banks Still Top Silicon Valley, Hedge Funds for Freshly-Minted MBAs

Jun 21 2016 | 9:01pm ET

Contrary to concerns that Wall Street isn't as appealing to new graduates as it...

Guest Contributor

The Future of the Blockchain in Financial Services Communications

Jun 17 2016 | 1:05pm ET

Over the past year, a large portion of the financial services industry has awakened...