American International Group, Inc. (AIG) Among Fortress Investment Group’s Top Picks

Page 1 of 2

Fortress Investment Group started out as a private equity firm in 1998, founded by Wesley Edens (a former partner at BlackRock Financial), Robert Kauffman (a managing director of UBS) and Randal Nardone (another managing director of UBS). Fortress has four core businesses: private equity, credit, liquid markets and traditional asset management. The firm has been successful with taking portfolio companies public, including Aircastle, Brookdale Senior Living and RailAmerica. After reviewing Fortress’ latest 13F–an SEC filing that reveals the majority of the firm’s publicly owned securities–we have outlined its top five holdings (check out Fortress’ entire 13F portfolio here).

top hedge funds

Nationstar Mortgage Holdings Inc (NYSE:NSM) is Fortress’ number one stock pick, with over 50% of the firm’s 3Q 2012 13F portfolio invested in the stock. Fortress purchased Nationstar in 2006 and took the company public this past March. The loan service company operates throughout the U.S. with a focus on agency and government residential mortgage loans. The stock is already up 25% year to date in 2013 – driven by the announcement that it will acquire $215 billion in mortgage servicing rights (MSRs) from Bank Of America. Nationstar plans to pay $1.3 billion for the MSRs.

The transaction will add 1.3 million customers to the company’s 1.2 million base. Fitch Ratings is now monitoring Nationstar to see how the MSRs from Bank of America will be integrated. Worth noting is that Fitch does not expected the recent transactions to impact the loan servicer’s ratings. The snatching up of MSRs is something Fortress has been advocating since early 2012 when it launched a private equity firm to focus solely on the rights. In early 2012, Wes Edens, head of private equity at Fortress had this to say during an earnings call about MSRs:

“In the U.S., the regulatory drumbeat continues…there is going to be a flight of businesses and assets out of regulated financial institutions into non-regulated. We see that certainly in the mortgage-servicing rights.”

As of its last 13F filing, RailAmerica was officially Fortress’ second largest holding, and was acquired by the firm in 2007. As a publicly traded entity, the stock is now currently defunct after RA’s operations were sold to Genesee & Wyoming Inc. last year. The deal was actually completed on October 1st, one day after the Q3 filing period ended, which explains why the holding is still listed.

Let’s move on to the remaining four picks in Fortress’ top five that are actively traded.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

The 10 Biggest Tax Havens in the World to Stash Your Money

The 15 Most Murderous Countries in the World

10 Largest Colleges in the World: Bigger Isn’t Always Better

Comedians in Cars Getting Coffee: The 6 Comedians Seinfeld Needs to Interview

Easy Money: The 10 Most Successful Investors in the World Today

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!