Tuesday, September 22, 2009

Fortress elects to retain (your) capital (FIG)

AlphaNinja - Alternative asset manager Fortress Investment Group (FIG) elected not to pay shareholders a dividend.

Here's the exhaustively detailed release, in it's entirety (won't crash any servers)

Fortress Elects to Retain Capital
NEW YORK, Sept. 22 /PRNewswire-FirstCall/ -- Fortress Investment Group LLC (NYSE: FIG) announced today that it elected not to pay a dividend in the third quarter of 2009. The Board elected to retain capital for potential future investment opportunities and for working capital purposes.

About Fortress
Fortress is a leading global alternative asset manager with approximately $31.0 billion in assets under management as of June 30, 2009. Fortress manages private equity funds and hedge funds. Fortress was founded in 1998. For more information regarding Fortress Investment Group LLC or to be added to our e-mail distribution list, please visit
www.fortress.com.

If preserving liquidity by canceling the dividend saves the common stock, I'm all for it. But these guys don't deserve too much sympathy. They're smart as hell, which is why their IPO was so perfectly timed with the market's top:



Part of the need for preserving liquidity is the disatrous performance in their hedge fund division. Management fees (the fee just for showing up to work) on those funds is down 65%, while incentive fees (paid for good performance) are down 99%:




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