Saturday, 20 December 2014
Last updated 13 hours ago
Mar 27 2008 | 2:00am ET
Fortress Investment Group plans to raise as much as $20 billion this year to pounce on opportunities created by the credit crisis.
In a conference call on Tuesday, Fortress CEO Wes Edens said the firm has already raised $2.7 billion in new capital this year, and hopes to raise between $15 billion and $20 billion by year’s end. And where will that money go? Probably to beaten-down mortgage-related securities and financial services investments, Edens said.
“Now is the time to look to buy,” he said. “The gap between the market’s perception and the actual risk is the widest I’ve ever seen.” He called the ongoing credit crunch “one of the greatest de-leveraging events of our lifetime.”
In spite of his firm’s $29 million fourth-quarter loss, Edens said its hedge funds—including its credit offerings—have more or less weathered the storm. He credited a limited use of leverage in its funds for their success, or at least, for their lack of catastrophic failure. The firm’s hybrid credit funds returned 14.43% last year, while its liquid hedge funds rose more than 18%.
“One of the key aspects is not to be over-leveraged,” Edens said. “Something that’s a good idea in any market but in a market such as this one being on the wrong side can truly be fatal.”
He added that Fortress expects “this to be a terrific investment year.”
“It will be a truly tremendous series of private-equity and other related opportunities.”
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
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.