Fortress Investment Group

Tricky terrain: Distressed mortgage assets

Jim Kim — Wed, 12 Nov 2008 13:42:05 -0500

So is now the time to jump into distressed mortgage securities? A lot of funds thinks so, but some may have jumped a bit early. Fortress Investment Group has been lumped into the "a bit early" category. But for Bryan Caisse, an 18-year veteran of the mortgage markets, the time is now. He is launching Huxley Capital Management with backing from a United Arab Emirates-based investor, reports Fortune. Distressed mortgage asset-oriented hedge funds have been one of the few growth areas in a middling industry this year. No fund seems to have hit a home run going long on mortgage bonds. But at some point, a nadir has to be reached. Caisse tells the magazine that others have stumbled on overly aggressive use of leverage, improper hedging and failing to reckon with liquidity issues. Hopefully, he'll fare better.

For more:
- here's the article

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Alternative investment firms take lumps in aftermarket

Jim Kim — Tue, 24 Jun 2008 21:43:24 -0400

The window for an initial public offering closed pretty quickly for most alternative investment firms, which were lining up to follow the likes of the Blackstone Group, Och-Ziff and Fortress Investment Group. In hindsight, for the few that managed to sell their shares, it's unclear whether the IPO was a blessing or a curse. They sold their shares at a decent price, but the aftermarket, as Fortune notes, has not been kind. Fortress and the Blackstone Group are down about 50 percent, with Och-Ziff not far behind. Still, you have to wonder whether this is a buying opportunity. There are those who believe the worst is over and that the top alternative investors are laying the groundwork for a revival of sorts, via distressed funds for example.

For more:
- here's the article