Jan 21 (Reuters) – Fortress Investment Group LLC’s macro hedge fund lost 7.64 percent last week, the latest in a series of funds to suffer after the Swiss National Bank (SNB) removed a cap on the franc, sending the currency soaring.
The Fortress Macro Fund, managed by Michael Novogratz and Jeff Feig, did not give a reason for the loss in the letter sent to investors on Wednesday. This raises the loss for the fund to 7.9 percent so far this year, the letter obtained by Reuters showed.
The SNB shocked markets last Thursday by removing a three-year-old cap on the currency, inflicting deep portfolio losses for macro hedge funds that focus on major economic trends and bet anywhere they see value, including stocks, currencies, bonds, commodities and derivatives markets. [ID: nL6N0UU2CQ]
The move sent the safe-haven franc soaring against the euro and the U.S. dollar at a time when more than $3.5 billion was betting on franc weakness, the largest such position in more than a year and a half.
1/9/2015: Analysts at Credit Suisse downgraded Fortress Investment Group LLC (NYSE: FIG) by lowering their rating from Outperform to Neutral and setting a $9 price target. Fortress Investment Group is a diversified global investment management company based in New York.
Fortress’ last earnings report in October was a mixed bag of news for shareholders. The company beat revenue expectations by generating $404 million for the quarter. However, Fortress fell short of consensus earnings expectations by posting earnings per share of $0.12 versus consensus estimates of $0.16 per share. The company’s Q4 numbers are expected to be out at the end of February.
Fortress (FIG) sounds like a strong name but is it really? The stock is down over 60% since its debut in 2007. “FIG has been the subject of a number of recent research reports. Analysts at Zacks downgraded shares of Fortress Investment Group from a “neutral” rating to an “underperform” rating in a research note on Tuesday. They now have a $7.00 price target on the stock. One investment analyst has rated the stock with a sell rating, three have issued a hold rating ………..”
“Fortress Investment Group Sets New 12-Month Low at $6.01 (FIG) ” No wonder FIG wants government money!
Fortress Stock is pretty risky! High Beta of 2.09! “How Risky is Your Portfolio? Fortress Investment Group (FIG)
A beta of 1.0 indicates that the investment’s price will move in lock-step with the market. A beta of less than 1 indicates the investment will be less volatile than the market, and correspondingly, a beta of more than 1 indicates the investment’s price will be more volatile than the market. For example, if a fund portfolio’s beta is 1.2, it’s theoretically 20% more volatile than the market. Fortress Investment Group LLC (NYSE:FIG) has the market capitalization of $3.07 billion while 434.13 million shares were outstanding. Beta factor, which measures the riskiness of the security, was recorded as 2.09.”
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(*NOTE* Fortress Investment is the largest shareholder in Nationstar.)