Fortress Investment Group Earnings
Fortress Investment Group Profits Fall 45% with Fees
The decline wasn’t as steep as forecast by six analysts, who on average estimated profit of 4 cents in survey by Bloomberg.
Global hedge funds declined 5.6 percent on average in the third quarter amid volatile markets, according to the Bloomberg Active Indexes for Funds. Distributable earnings from Fortress’s credit hedge funds fell to a $1 million loss from a gain of $15 million a year earlier. Investors pulled $600 million from its liquid hedge funds.
“Third quarter was a pretty brutal environment from virtually every perspective,” Mudd, Fortress’s chief executive officer, said on a conference call with analysts and investors. “The challenges pretty much cut across sectors and markets and geographies.”
Assets under management fell to $43.6 billion from $43.8 billion at the end of the second quarter. Assets in private- equity funds dropped to $9.5 billion from $10 billion on June 30. Source