Fortress Swings to Q4 Loss

NEW YORK (AP) – Fortress Investment Group LLC, a private equity and hedge fund manager, on Tuesday reported a fourth-quarter loss after paying $240 million in principal compensation.


The company, which had $33.2 billion in fee paying assets at the end of the year, reported a loss of $29 million, or 43 cents per share. A year ago, the company earned $290 million. Fortress did not provide per-share data for the year-ago periods, saying a restructuring in January 2007 makes a comparison meaningless.


Excluding the principal compensation payment and other items, profit fell to $78 million, or 18 cents per share, from $138 million a year ago.


Revenue fell to $304 million from $488 million the year before. Segment revenue came in at $196 million, with management fees accounting for $129 million.


For the year, the company swung to a loss of $59.8 million, or $2.14 per share, and revenue dropped to $1.24 billion from $1.52 billion in 2006.


Shares rose 29 cents, or 2.6 percent, to $11.30 in premarket trading. The stock closed at $11.01 on Monday.