Fortress Stormed By Redemption Requests, Loss

Nov 13 2008 | 2:35pm ET

Fortress Investment Group investors have stormed the ramparts, demanding the return more than $4 billion.

The New York alternative investments giant said that it has received redemption requests totaling about a quarter of its hedge fund assets, or $4.5 billion. Investors have asked to pull some $2.6 billion from its liquid hedge funds through the end of January, and $1.9 billion from its hybrid hedge funds on Dec. 31. All told, those funds manage about half of Fortress’s $34.3 billion in assets.

The funds in question have been battered amidst the market volatility. The firm’s Drawbridge Global Macro Fund is down 13.5% and its Special Opportunities Fund has lost 7.2%.

Worse still for the firm, it posted its first quarterly loss since going public last February. The firm said it lost $20 million in the third quarter, compared to a $111 million profit a year earlier. Its net loss was $57.4 million, including costs related to its initial public offering. Revenue fell by a quarter to $185.1 million.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

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.