The Growth of Fortress Investment Group

The Growth of Fortress Investment Group

Fortress Investment Group is one of the largest investment management companies in the United States. The company has its headquarters in New York and other offices in several parts of the world. The investment group was founded by three businessmen from the United States who came together to start the biggest investment firm in the country. The company decided to sell its shares to the public in the year 2007. Although the company started by managing  private equity firms, by the year 2016 it had grown and it managed various assets worth $70.2 billion.

The Growth of Fortress Investment Group

After being started by Wesley Edens who was working at BlackRock Financial Management, Rob Kauffman and Randal Nardone who was also the managing director of USB; it grew and expanded after a short period it started managing investments that were related to real estate investments, hedge funds and it started offering debts securities. All these other investments that were later invested into by the company were managed by Michael Novogratz and Pete Briger.Since 2010, Fortress Investment Group has been able to assist several companies who were on its way to bankruptcy. One of the companies that have been boosted by the Fortress includes Thermos which was a startup company dealing with medicine then.

The Thermos Company was given a loan of $100 Million by Fortress Investment that enabled the company to solve their financial problem throughout the following year.At the beginning of this year the investment group also secretly started placing bids on personal passenger rail line that operated in Florida. However, the rail line later dissolved into the Florida East Coast Railway but it inspired other investors to push for the birth of Brightline which is the only private passenger train in the United States.The Fortress Investment Group has also acquired numerous companies which include Canadian ski resort, Rail America Inc and Florida East Coast Industries amongst other companies. All these companies acquired by the investment group have been renovated and their markets have been expanded using business strategies from Fortress group’s experienced workers.

Sahm Adrangi Reveals Why He Doesn’t Think QuinStreet Is A Good Investment

Kerrisdale Capital Management issued a report about QuinStreet, Inc. recently that was quite negative. QuinStreet is an online marketing firm headquartered in Foster City, CA. It was founded in 1999 and has something of a sketchy past including having to pay a fine of $2.5 million when it was discovered they were illegally using advertising targeted at veterans in order to get them to become students at a number of for-profit universities.

While investigating QuinStreet’s current advertising tactics Sahm Adrangi, the founder and CIO of Kerrisdale Capital, and his team of analysts saw that QuinStreet is once again engaging in suspicious activities. Sahm Adrangi says that QuinStreet is sending a lot of phony traffic to websites under their control. This creates a stream of income for QuinStreet at the expense of the clients they have signed up. The report also states that just about all of the revenue growth at this company has come from just one of their clients which isn’t a sustainable business model. He called QuinStreet a firm whose business model is completely broken.

Before issuing the report on QuinStreet, Kerrisdale Capital had taken a short position on it. This means if QuinStreet’s stock value plunges Kerrisdale will make investment gains. Sahm Adrangi indicated in his report that he would be holding a telephone conference later that day where he and his team would divulge the information they have documented about QuinStreet.

Sahm Adrangi was just 24 years old when he founded Kerrisdale Capital in 2009. Prior to that he had worked for three firms in the financial industry which were Chanin Capital Partners, Longacre Fund Management, and Deutsche Bank. He had been an analyst for each of these firms and developed knowledge about leveraged financing, restructuring investments, distressed and bankrupt businesses, and other areas of finance.

The hedge fund Sahm Adrangi manages is primarily invested in value stocks that he holds for a long time. However, when Sahm Adrangi sees a special situation such as QuinStreet he is willing to short a company’s stock. This type of investing is starting to become known as soft activism investing.