Sector Snap: Fortress Leads Asset Managers Higher

NEW YORK (AP) — Fortress Investment Group led asset managers higher in Wednesday trading after Barclays Capital upgraded the stock, and commented favorably on the group overall.

Analyst Roger Freeman raised his rating on Fortress to "Overweight" from "Equal Weight," and spiked his price target to $9 from $3, saying he prefers alternative asset managers to the traditional companies right now.

Fortress manages investments for pension funds and endowments, and manages hedge funds and alternative investment vehicles.

"We are favorably disposed toward asset managers, though our view on the traditional asset managers is clearly more neutral following a significant outperformance since the March lows versus the market and recent underperformance as investors grow skeptical of further market gains," Freeman wrote in a note to clients. He said he prefers Fortress to private equity firm The Blackstone Group, which he upgraded to "Equal Weight" from "Underweight" because the stock is less expensive, even though he sees Blackstone as "the highest quality name."

Fortress shares jumped 66 cents, or 14.8 percent, to $5.13 as volume spiked to more than double normal daily trade. Blackstone shares added 33 cents, or 2.6 percent, to $13.01.