The Fortress Investment Group is a world-class hedge fund, with its headquarters in New York City. Wesley R. Edens and Rob Kauffman founded the company in 1998 after each received their MBA degrees from the University of Oregon’s Lundquist College of Business. Since its inception, the company has grown to be one of the largest private equity firms in the world.
Fortress Investment Group, New York employs more than 1,000 people worldwide and manages over $40 billion worth of investments across various sectors. These include real estate, stocks, bonds, credit funds that are structured as loans or mezzanine financing for other companies’ projects. Other ventures include cell phone towers and infrastructures development projects such as tunnels, bridges, and railroads.
Fortress Investment Group is known for taking on a lot of debt when making its investments. However, the company has managed this by being conservative in some respects, including going with smaller companies instead of larger ones with more financial pressure from investors who demand quick results.
Due to Fortress’ conservative approach to investing, the company has been able to avoid some of the pitfalls that have affected other hedge funds. Fortress’ investments in General Motors and AIG just before these companies filed for bankruptcy were highly lucrative for them at a time when many investors couldn’t see past their noses.
Fortress success is primarily based on the fact that it goes against the grain. The latter is depicted by its investment in Chrysler Financial, which most financial analysts had written off as not worth saving. Fortress Investment Group saw the opportunity to make money and was right on target with its decision to invest in this dying business.
Fortress Investment Group’s steady performance for the past few years has been instrumental in its continued success. Fortress Investment Group is one of the largest hedge funds in the world.