Bay Pond Partners, a long/short equity hedge fund managed by Nicholas Adams, revealed a 5% stake in Fortress Investment Group LLC (FIG). FIG shares which stood at $5.15 on Friday were trading at $8 a year ago. At first glance the stock seems cheap. The company recently tried to buy back a large number of shares in a tender offer after the stock fell below $4 but failed to capitalize on this opportunity. It bought only 4.8 million shares at $4.75 per share. It could have bought back many more shares at much lower prices if the company decided to make open market purchases.
We don’t know much about Bay Pond Partners’ recent performance but Wellington Asset Management’s hedge fund actually managed to outperform the market by a large margin between its inception in 1994 and 2011. It returned 22.5% annually during this period. It returned 20.85% in 2010, 67.4% in 2009, and 30.2% in 2007. Bay Pond Partners lost 20.9% in 2008.
Fortress Investment Group LLC (FIG) didn’t excite a lot of hedge funds at the end of 2015. Heading into 2016, a total of 18 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -14% from the third quarter. According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Jody LaNasa and Vivian Lau’s Serengeti Asset Management has the most valuable position in Fortress Investment Group LLC (NYSE:FIG), worth close to $39.2 million, corresponding to 7.3% of its total 13F portfolio. Sitting at the No. 2 spot is Michael Barnes and Arif Inayatullah of Tricadia Capital Management, with a $27.9 million position; the fund has 6.6% of its 13F portfolio invested in the stock. Remaining members of the smart money that hold long positions encompass Ric Dillon’s Diamond Hill Capital, Howard Marks’s Oaktree Capital Management and Eric Halet and Davide Serra’s Algebris Investments.
Bay Pond Partners’ recent filing puts it at the top of the list. The details of this filing can be seen below:
Ownership Summary Table
|Name||Sole Voting Power||Shared Voting Power||Sole Dispositive Power||Shared Dispositive Power||Aggregate Amount Owned Power||Percent of Class|
|Bay Pond Partners||0||11,115,807||0||11,115,807||11,115,807||5.03%|
Page 1 of 4 – SEC Filing
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Under the Securities Exchange Act of 1934
Fortress Investment Group LLC
(Name of Issuer)
Class A Common Stock
(Title of Class of Securities)
April 05, 2016
(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule
pursuant to which this Schedule is filed:
|[ ]||Rule 13d-1(b)|
|[ ]||Rule 13d-1(d)|
The remainder of this cover page shall be filled out for a reporting person’s
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be
deemed to be “filed” for the purpose of Section 18 of the Securities Exchange
Act of 1934 (the “Act”) or otherwise subject to the liabilities of that section
of the Act, but shall be subject to all other provisions of the Act (however,
see the Notes.)