Fortress Investment Group had $29.5 billion in assets under management as of Dec. 31, a decline of 14.1% for the fourth quarter and down 10.6% for the year, attributed to poor investment returns, according to Fortress fourth-quarter earnings statement released today.
Total assets dropped an additional $2.4 billion to $27.1 billion on Jan. 1 when hedge fund redemption requests were met.
Overall, the hedge fund and private equity manager attracted net new inflows of $5.8 billion in 2008. The firms GAAP net loss totaled $322 million for the year, compared with a net loss of $60 million in 2007. Fund management distributable fee income of $216 million in 2008 was less than half the $525 million collected in the prior year.
The GAAP net loss in the fourth quarter was $140 million compared with a $29 million loss in the fourth quarter of 2007. Fund management distributable earnings in the last quarter of 2008 were $7 million vs. $77 million in the fourth quarter of 2007.
Fortress flagship liquid hedge fund, Drawbridge Global Macro Fund, had a net return of -9.6% in the fourth quarter and -21.9% for the year ended Dec. 31. By contrast, the Fortress Commodities Fund was down 0.4% in the fourth quarter and up 6.8% for calendar 2008.