FIG
Fortress Investment Group LLC
Finance/Real Estate, Event Driven/Special Sit
10/21/2015
Presented
| Date | 10/16/2015 |
| Price | $5.81 |
| Market Cap | $2.61B |
| Ent Value | $3.67B |
| P/E Ratio | 13.37x |
| Book Value | $2.82 |
| Div Yield | 0% |
| Shares O/S | 449.21M |
| Ave Daily Vol | 1,132,173 |
| Short Int | 1.23% |
Current
| Price | $21.32 |
| Market Cap | $1.40B |
| Fortress Investment Group LLC is a diversified global investment management company that provides investment management services for investment funds and companies, including related managed accounts. It operates business through following segments: Private Equity Funds, Liquid Hedge Funds, Credit Funds, Credit Private Equity Funds and Logan Circle. The Private Equity Funds segment primarily makes significant, control-oriented investments in debt and equity securities of public or privately held entities in North America and Western Europe, with a focus on acquiring and building asset-based businesses with significant cash flows. The Liquid Hedge Funds segment invests globally in fixed income, currency, equity and commodity markets and related derivatives to capitalize on imbalances in the financial markets. The Credit Funds segment makes diversified investments in assets, opportunistic lending situations and securities, on a global basis and throughout the capital structure with a value orientation. The Credit Private Equity Funds segment focuses on investing in distressed and undervalued assets. The Logan Circle segment manages portfolios for institutional investors across a comprehensive range of strategies that include core, core plus, short, intermediate and long duration, corporate and high yield. Fortress Investment Group was founded by Wesley Robert Edens, Robert I. Kauffman and Randy Alan Nardone in 1998 and is headquartered in New York, NY. |
Publicly traded companies mentioned herein: Fortress Investment Group (FIG), Blackstone (BX), Carlyle (CG) and Springleaf (LEAF)
Highlights
Fortress recently made news when it announced that it was shutting down its macro hedge fund formerly run by Michael Novogratz, leaving the company with its remaining private equity and credit PE businesses. Of note, FIG bought back Novogratz’ 13% stake in the fund at a 20% discount to market value. Generally underfollowed relative to asset managers Blackstone (BX) and Carlyle (CG), the presenter believes shares of Fortress at current levels offer a compelling risk/ reward profile. He has undertaken an exhaustive analysis of all the funds currently managed by the company, the economics and high water marks of which are clearly set forth in FIG’s filings. The sell side by and large has not done this work, according to the presenter, with most analysts instead ascribing a multiple to distributable earnings.
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