Nov 2 Hedge fund firm Fortress Investment
Group's quarterly profit rose roughly 49 percent in the
third quarter, helped by strong performances in its hedge,
credit and private equity funds, and beating Wall Street
New York-based Fortress, one of a handful of publicly traded
alternative asset managers, on Friday reported pretax
distributable earnings of $64 million, or 12 cents per
dividend-paying share, up from $43 million, or 8 cents per
share, a year earlier.
On that basis, analysts on average were expecting
distributable earnings of 11 cents per dividend-paying share,
according to Thomson Reuters I/B/E/S.
Fortress said pretax distributable income was the best way
to measure its performance because it excludes large quarterly
compensation costs stemming from the equity interest of
principals who took the company public in 2007.
The firm posted gains across its various portfolios, with
the Drawbridge Special Opportunities Fund rising more than 5
percent and the Fortress Macro Funds gaining about 3 percent.
Fortress also said its private equity fund valuations had risen
9.4 percent in the third quarter.
The company announced a third-quarter dividend of 5 cents
Fortress reported net income of $1 million attributable to
Class A shareholders, compared with a year-earlier loss of $142
million. It said the improvement was due mainly to a reduction
in costs associated with a "principals' agreement" that expired
at the end of 2011.
Total assets under management rose to $51.5 billion as of
Sept. 30 from roughly $48 billion on June 30.