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

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...