All Investment Managers Should Borrow a Leaf From Fortress Investment Group

Leadership has been a considerable challenge facing many investment management firms globally. However, Fortress Investment Group has beaten the odds and proved that it ’s possible to have effective leadership in an organization and also demonstrated the impact of having the same in organizations, especially investment management firms. The leadership of the company has been very stable over the years, led by the company’s able co-Principals Randal Nardone and Wes Edens (who are located in New York) and Peter Briger (based in San Francisco). Fortress Investment group has its main headquarter located in New York, but due to the rapid growth that the company has experienced over the last two decades, it has expanded its geographical territories by opening an additional headquarter in San Francisco, and two others in Shanghai and Singapore.

The leadership of Fortress Investment Group also translates to the effective management of the firm’s operations. This is evident from the robust tools that Fortress Group uses to evaluate and monitor its investment strategies which are in no doubt very sophisticated. The company also effectively evaluates the structural, operational and strategic facts on the ground while it does its portfolio management. All this is done with one intention; enabling the firm to generate good investment returns for their clients. Fortress Investment Group’s leadership has also contributed very much to the company’s recognition in the industry and the investment market, both in the US and internationally. It is due to the effectiveness of the firm’s leaders that Fortress has managed to grab a lot of industry performance-based awards and accolades.

For example, the Institutional magazine in 2014 named Fortress their “Best Hedge Fund Management Firm of the Year.” In the same year, a very prominent publication in the investment management sector named Fortress Group the “Investment Management Company of that Year.” Two years earlier, the Institution magazine had listed the firm as their “Most Macro-Focused and Flexible Hedge Fund.” Fortress Group had also been named the “Fund that was the most Credit-Focused during the Year” by the same magazine in 2010 and 2011 consecutively.In 2017, SoftBank Group Co. declared that it had fully acquired Fortress Investment Group, a transaction that had to cost them $3.3 billion in cash. This transaction was effected after the shareholders of Fortress had a deep analysis of the impact of the acquisition on the performance of the firm. This saw the outstanding Fortress shares transferred to SoftBank and its subsidiaries. However, Fortress continues to run its operations independently under the leadership of its three co-Principals, despite operating under SoftBank.