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

Osaic hit with class action over cash sweep payments
Osaic hit with class action over cash sweep payments

The hybrid RIA is the latest firm to face allegations that it enriched itself at customers' expense by paying unfairly low interest rates in its cash sweep programs.

LPL's Rich Steinmeier turns the page on CEO firing with eye on firm's growth
LPL's Rich Steinmeier turns the page on CEO firing with eye on firm's growth

Installed after Dan Arnold's abrupt termination, the new leader at LPL Financial is highlighting the firm's refocusing on the individual advisor.

LPL, Raymond James boost advisor ranks anew
LPL, Raymond James boost advisor ranks anew

LPL Financial welcomes a $345 million investment and planning team from Ameriprise as RayJay's employee advisor arm adds a seasoned Well Fargo breakaway.

CFP Board CEO Keller retiring
CFP Board CEO Keller retiring

The CFP Board will be searching for a replacement for CEO Kevin Keller who will be stepping down in April 2026.

$3000 gold record in sight on Trump 2.0 fears, says Citi
$3000 gold record in sight on Trump 2.0 fears, says Citi

Citi analysts project a historic high in three months as tariff and trade war threats fuel a rush for the haven metal.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.