October 6, 2011 / 10:05 PM / 8 years ago

Fortress hedge funds show mixed results in the third quarter

Oct 6 (Reuters) - Fortress Investment Group LLC FIG.N hedge funds did not emerge from the third quarter unscathed, although the firm’s credit portfolios were a rare bright spot, according to a regulatory filing released Thursday.

Two Fortress credit hedge funds remain in positive territory for the year despite losses in August.

The Drawbridge Special Opportunities Fund LP declined 1.29 percent in August, outperforming the benchmark HFRX Event Driven Index, which fell 4.05 percent in August. That Fortress fund is up 6.54 percent for the year.

The Drawbridge Special Opportunities Offshore Fund Ltd. fell 0.53 percent in August, but returns are positive for the year, up 9.2 percent.

For Fortress, macro investments were a sore point in September.

The Fortress Macro Fund Ltd returned 0.29 percent last month, outperforming the benchmark HFRX Macro/CTA Index, which declined 2 percent over the same period. However, that small gain did little to improve on yearly performance. That fund is down 7.32 percent for the year.

The worst monthly performance occurred in the Fortress Asia Macro Fund, which fell 2.5 percent in September. That fund is down 1.23 percent for the year.

Fortress is not alone in its suffering though.

Hedge funds recently hobbled through their worst quarter since 2008 as the sovereign debt crisis escalated in Europe, commodities plunged and U.S economic growth stagnated. The average hedge fund lost 5.02 percent in the third quarter, according to Hedge Fund Monitor, a report compiled by analysts with Bank of America.

Reporting by Katya Wachtel in New York, editing by Bernard Orr; Katya.Wachtel@thomsonreuters.com; 646-223-6203

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below