Overview on Fortress Investment
The Fortress Investment Group is a reputed, global alternative asset manager. The firm has its headquarters in New York, with affiliates in Los Angeles, Dallas, Charlotte, Chicago, London, Frankfurt, San Francisco, New Canaan, Rome, Shanghai, Sydney, and Tokyo.
An asset-based investment management firm, Fortress investment was began in 1998. Their fundamental philosophy is to align their own interests with those of their clients. One of Fortress Investment’s primary duties is to raise, invest, and manage hedge funds and private equity funds. Fortress wants to grow their existing businesses, and to continue to create innovative products to meet the increasing demand by sophisticated investors for superior risk-adjusted investment returns.
History of Fortress Investment Firm
A private equity firm founded in 1998, Wesley R. Eden’s’ Fortress Investment Group LLC has enjoyed an interesting decade as a hedge fund leader. Along with hedge funds, Fortress Investment has expanded into real estate-related investments and debt securities. Michael Novogratz and Pete Briger, both former partners at Goldman Sachs, have been managing the company. Fortress Investment Group has grown rapidly. The private equity funds netted a respectable 39.7% between 1999 and 2006. In September 30, 2006, Fortress Investment Group’s IPO held around $17.5 billion and around 9.4 billion in private hedge funds equity.
Reviewing – Fortress Investment
A market leader in the creation and management of hedge fund investment products, Fortress Investment focuses on absolute returns and is comprised of two different business segments. They focus on hybrid hedge funds and liquid hedge funds. The hybrid hedge funds include Drawbridge Special Opportunities Funds and the Fortress Partners Funds. The liquid hedge funds include Drawbridge Global Marco Funds.
In the private equity business Fortress Investment primarily makes sound, control-oriented investments in North America and Western Europe with a focus on acquiring and then building up asset based business. They also manage funds that focus on investing undervalued long term investments.
Hybrids are securities that combine some of the characteristics of both debt and equity securities. Liquid hedge funds have become very popular in the aftermath of the market crisis and having them creates diversity in a portfolio.
Castle business is actually made up of two publicly managed traded companies, which are Newcastle Investment Corp (NYSE:NCT) and Eurocastle Investment Limited (Euronext Amsterdam: ECT and Frankfurt Stock Exchange: EUI1) This business currently invests primarily in real estate and real estate debt investments.
Hedge hybrid funds include two sets of funds. One makes highly diversified investments globally in undervalued and distressed assets such as loans, assets, and corporate securities. Liquid hedge funds are invested globally in fixed income, currency, equity, and commodity markets with related derivatives to capitalize on imbalances in the financial markets.
Along with the company’s railroad related investments and real estate funds; Fortress Investment has announced plans to move into other ventures including unorthodox possibilities such as casinos and horse racing.