One of Fortress Investment Group's best-known business lines is likely to lose assets after a streak of poor performance. But problems at the relatively small unit come even as the firm is managing more money than ever.
Investors recently requested about $400 million of their money back from the now $3.2 billion Fortress Macro Fund after sharp losses in January, according to a company earnings call Thursday. Those redemptions added to $388 million in outstanding requests made over last year, when the fund also lost money.
But those potential declines come as assets at Fortress hit a record of $67.5 billion at the end of 2014. The firm posted its best full-year earnings since 2007, the year it went public. Fortress added $12 billion in aggregate of new capital for other funds, which include private equity and credit investment vehicles. Fortress managed $29 billion in 2008.
"With strong investor demand for our strategies, major positive developments in some of our largest portfolio investments, and tremendous embedded value both in our funds and on our balance sheet, we have great visibility and optimism about the value we can create," CEO Randy Nardone said in a statement Thursday.