JSM Financial: Hedge fund and pvt equity firm Fortress Investment post huge 1st quarter loss.

May 6, 2010 - PRLog -- JSM Financial believes that New York-based hedge fund and private equity firm Fortress Investment Group has announced a net loss of $261 million for the first quarter of this year saying it had paid out compensation almost double its revenue.

According to company sources with knowledge of the situation the loss attributable to common shareholders of $84 million or 58 cents per share had increased from last year’s first quarter loss of $67 million or 71 cents per share.

The firms distributed earnings before tax was $96 million or 19 cents a share.
JSM Financial sources say that analysts had forecast that Fortress Investment Group would report around 8 cents per share.

It is understood that a net $895 million was withdrawn by investors during the quarter including capital raised, redemptions and return of capital distributions. Special purpose vehicles also returned another $861 million back to investors.

Fortress revenue for the quarter increased 31% from a year earlier up to $160 million and compensation and benefits for staff increased 64% to $179 million with the company’s principals claiming compensation of $235 million which JSM Financial was told was unchanged from the previous year.

While Fortress stock has seen an 11% rise this year it remains significantly below its pre stock exchange listing in 2007 level of $18.50 per share.

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