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Fortress Mortgage Fund Down 30%

NEW YORK (Reuters) – A Fortress Investment Group LLC (FIG.N: Quote, Profile, Research, Stock Buzz) fund, the Fortress Mortgage Opportunities Fund, is down about 30 percent three months after the firm raised funds for it, the Wall Street Journal reported on its website on Sunday.

Fortress raised $560 million for a fund this spring by buying triple-A-rated residential mortgage-backed securities, the paper said.

The fund uses three-times leverage, owns only triple-A residential mortgage-backed securities and investors are locked in for three years, the paper said, citing unnamed sources.

Fortress could not be reached immediately for comment.

(Reporting by Paritosh Bansal, Editing by Jacqueline Wong)