Sunday, 26 March 2017
Last updated 2 days ago
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.