Don’t say we didn’t warn you. Fortress has given a nice little 96% bath to investors in its IPO and has blocked redemptions.
Two years after commissioning the ski lift, Edens, 47, finds himself staring into an abyss of a different sort. He’s the chief executive officer of money manager Fortress Investment Group LLC. Edens and his partners became instant billionaires when the company, which manages $34.3 billion in private equity and hedge fund holdings, went public in 2007. The Montana-born Edens, who ski-raced in high school, could have paid for the gondola himself.
In the past four months the shares of Fortress have lost most of their value, falling 96 percent to $1.34 from $31 on Feb. 9, 2007, their first trading day. “There’s been a lot of hardship in the world since then,” says Edens in a rare interview.
The stock prices of a half dozen other publicly traded companies controlled by Fortress have also plunged.
Analysts are bearish on Fortress, even at a rock-bottom price.
The (very long) article on Bloomberg is worth a look. Particularly if you hate pretentious skiers.
Fortress Blocks Redemptions as Shareholders Lose 96% Since IPO [Bloomberg]
“There’s been a lot of hardship in the world since then,”
No shit you ^%*&# prick
given?
Leverage made them “smart”…now we know they are all idiots..
PE = Dumb ass with debt!
believe.
–Dylan Ratigan
There’s an easy fix to the economy – the government needs to commission John Thain to sell any and all toxic assets for as much as he can get.
He did manage to sell bankrupt ML for $50B, right?
To Bastone, Didn’t Battle
“Almighty and most merciful Father, we humbly beseech thee, of thy great goodness, to restrain these immoderate rains with which we have had to contend. Grant us fair weather for battle. Graciously hearken to us as soldiers who call upon thee that armed with thy power, we may advance from victory to victory, and crush the oppression and wickedness of our enemies, and establish thy justice among men and nations. Amen.”
What is the relationship between FIG and the underlying funds? Same question about BX.
Obviously FIG and BX rely on fee income from the underlying funds, so the performance of the funds matters a lot. And clearly they absorb a lot of the management expenses.
But aren’t these firms somewhat divorced from what the funds are doing?
That’s why I couldn’t buy these funds on the IPO’s – it was never clear what the LP’s were getting.
Traders don’t lose money; “hardships in the world” do.
blocking redemptions is so 2008.
No one falls farther or faster than false heros. Just wait until you see how people feel about Barry in four years.
hedge funds are over
Is it me or is Sharon Epperson looking a lot like Michael Jackson today?
It’s because Michaelson was there, asleep at his terminal.
why dont’ the funds just buy back all the public equity?
Clusterf*ck, ENGAGE!
@11: Ba-zing! Let’s hope William Harrison doesn’t delete your comment for referencing the messiah without bowing.