Fortress Investment Group (FIG) provides financial advice to its clients through its investment management business. In addition, it provides risk management and asset management services to its clients through its business model while offering professional advice.
Fortress’s investment portfolio consists of a variety of assets, including domestic and international equities, fixed income, private equity, credit investments, hedge funds, and real estate. The asset class composition of Fortress’s portfolio typically ranges from 80% to 92% cash to 6% to 14% equity.
As of December 31, 2017, Fortress’s assets under management (AUM) were approximately $66.1 billion. Fortress Group’s investment strategy focuses on investing in both private and public markets. Fortress Investment Group (New York) is not a Ponzi scheme, nor is it a scam. Instead, this is a legitimate, honest-to-goodness business that invests its funds in a broad variety of assets.
In 1999, it purchased more than 60 percent of Goldman Sachs’s European hedge fund, which was subsequently named Fortress. Fortress Investment Group was founded as a financial management firm that used alternative asset management techniques. They do this by selling corporate debt instruments, hedge fund investments, asset management, and venture capital investments.
Fortress has a stated ambition of the “longest life corporate bond specialist” globally and has the largest hedge fund franchise in the world. They manage some $60 billion in assets under management across hedge fund, structured credit, and real asset funds.
Its funds are used to finance mergers and acquisitions, debt instruments, real estate, hedge funds, structured products, and distressed debt. It is best known for having made an early investment in Steve Cohen’s fund that later became SAC Capital Advisors.
The New York Firm has produced a great deal of media coverage, and this is partly because the firm is known for its billion-dollar bet against the U.S. mortgage market in 2007.
As a hedge fund and private equity company, Fortress was one of the first firms to make that bet in 2007. First, the firm’s subsidiary made a bet. Since then, Fortress Investment Group LLC has successfully made money from the debt it gained on mortgages.