Updated from 10:36 a.m. EDTFortress Investment Group ( FIG) saw its fourth-quarter loss balloon from a year ago as the firm faced a surge in investor redemptions and a barrage of writedowns. The New York-based hedge fund operator reported a fourth-quarter net loss of $140 million, or $1.50 a share, compared with a year-ago loss of $29 million, or 43 cents a share. Fortress said revenue slumped 48% from a year ago to $158 million. Fortress' pre-tax distributable losses, which exclude unrealized gains or losses on illiquid investments and certain types of expenses, but include contingent revenue, were $258 million in the quarter, compared to pre-tax distributable earnings of $78 million in the year-ago quarter. Fortress also said it has set aside $299 million in reserves for potential clawback obligations to investors and asset writedowns. At the end of November, Fortress temporarily suspended redemptions at its largest fund, Drawbridge Global Macro. After the suspension was lifted on Jan. 31, the fund saw redemptions totaling $3.3 billion. Fortress said it has paid $2.1 billion in redemption requests in cash and $900 million in shares of newly created vehicles that hold stakes in a pool of investments. The remaining $300 million balance will be paid before the end of the month, the firm said. Assets totaled approximately $29.5 billion at the end of the quarter, Fortress said, although that number fell to about $27.1 billion on Jan. 1 as fee-paying capital in funds no longer paid fees beginning in January. Fortress said that its principal investments segment lost $265 million in the quarter, which included $228 million for investments in private-equity funds, a $27 million loss on the mark-to-market value of investments in hedge funds and $10 million of interest expenses.