Fortress plunges 52% in first quarter

The first hedge fund to go public today posted a 52% drop in first-quarter net income.
MAY 15, 2007
By  Bloomberg
Four months after becoming the first publicly traded hedge fund manager, Fortress Investment Group LLC posted a 52% drop in first quarter net income for the quarter ended March 31, due to a $71.8 million reorganization expense. The New York-based company specializing in private-equity funds, hedge funds and publicly traded alternative investments reported net income of $62.1 million, compared to $130.1 million in the year-ago period. Revenues grew 13% to $415.3 million, compared to $370 million in the first quarter of 2006. Analysts surveyed by Thomson Financial had predicted earnings of 27 cents per share on revenue of $353.3 million. The liquid hedge fund business brought in $33 million of pre-tax distributable earnings, off 54% compared to $71 million for the quarter ended March 31. Assets under management increased 72% to $35.9 billion, compared to $20.9 billion during the first quarter of 2006. Management fee paying assets under management rose 62% to $23.4 billion, compared to $14.5 billion during the year-ago period. Fortress last week agreed to acquire Florida East Coast Industries Inc., a real-estate holding company for $3.5 billion (InvestmentNews, May 9) .

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave