Fortress Eyes Opportunity In Mortgage Mess
Fortress Investment Group (FIG) may aim to ramp up its investments in mortgage paper, which have starkly fallen out of favor on Wall Street.
The U.S.'s first publicly-traded alternative investment firm says it could step up its investment in residential asset-backed debt as the market dislocation subsides over the next two or three years.
"The next two years certainly we're going to be very focused on the entire residential and asset-back sector," said Co-President Peter Briger Jr., during the company's third-quarter earnings call. The Fortress executive said that he would not be surprised if the investment manager sought to raise additional funds "to go after those assets on a stand alone basis," but didn't elaborate further.
"At Fortress we don't like to bet the ranch, and lose the ranch," Briger later added. He also said the company doesn't like highly leveraged fixed-income investments.Fortress stock jumped about 6.6% to $18.34 on the heels of Briger's comments. The company's performance comes a day after private equity firm Blackstone Group (BX) reported a net loss of $113.2 million, or 44 cents a share, including costs of $802.6 million, mostly from compensation related to its June IPO. Blackstone, which has been pummeled in the market since going public, warned that it could record losses "for a number of years" related to its IPO.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV