A lesson on investment based on Fortress Investment Group

Institutional Investor magazine awarded Fortress Investment Group “Credit-Focused Fund of the Year” two years in a row that was in 2010 and 2011 this would later be followed by the “Discretionary Macro-Focused Hedge Fund of the Year” in 2012. Other publications would also recognize its extraordinary achievements and in 2014 HFMWeek awarded them with the “Management Firm of the Year” distinction before closing the year with a “Hedge Fund Manager of the Year” award from the Institutional Investor. This was just but a recognition of the milestones the group has been able to achieve since it was founded in 1998 becoming one of the fastest growing alternative investment vehicles by growing its asset base from a combined 400 million to 3.2 billion within five years. This was no mean task as it meant that it was growing its private equity at a rate of more than 39 percent year on year.

The Fortress Investment Group had a strong team at the helm and was able to diversify into various fields from the moment it was launched. Today it has been able to be more specialized as the industry continues to grow and has chosen to focus on the following areas capital markets, operations management, sector-specific knowledge of companies and institutions, corporate mergers and acquisitions and asset-based investing. This has been made [possible through credit funds as well as private equity funds. This financing model has helped it build assets, including capital, real estate, and financial vehicles that will see the Fortress Investment Group grow both its long-term as well as short-term revenue over time.

Its day to day affairs are mostly managed by Randal Nardone and Wes Edens, who are focused on the New York region while Peter Briger focuses on San Francisco. This has ensured that all regions are under the direct management of an equally capable member of the Board of Directors. Peter Briger joined Fortress in 2002 from Goldman and has been with the group since then joining the board in 2006 and becoming Co-Chairman in 2009 this was just a year and a half after the group went public listing on the NYSE. The other two were part of the founding team of three. Intrawest the largest ski resort owner in Canada was acquired by Fortress Investment group some time back and has proved to have been a worthwhile investment. This was also true for AIG’s American General Financial Services which gained as much as 27 times its initial value.

Sahm Adrangi Issues Negative Guidance on Companies

Sahm Adrangi is an investment analyst who helps other investors find quality stocks. He is detailed and helpful for anyone who needs financial information or commentary. He recently issued a negative report on a company that many people find fascinating. Kodak is a company that produced cameras for decades. During this time, Kodak was the leader in the industry. However, once phones could take clear pictures, many people stopped buying traditional cameras.

In the cryptocurrency euphoria, Kodak announced that the company was developing a cryptocurrency option. As soon as the announcement went out, the stock more than doubled. Sahm Adrangi firmly believes that the stock is going to decline in the coming months. Ever since that announcement, the company has struggled to hold the stock price.

 

Business Failure

Kodak is an excellent example of the importance of changing with new technology. For many years, the camera and picture industry was declining. People were not willing to pay for expensive pictures when they could take them on their phone.

However, Kodak never changed their business model to adapt to the market conditions. The company struggled with declining sales and profits for many years. At one point, it looked like the company was going to go out of business. People like Sahm Adrangi repeatedly warned investors about the dangers of investing in dealing companies like Kodak.

Future Plans

Kodak has various plans for the future. However, few people in the investment community believe that the company can recover from the past few years. Even with a new cryptocurrency option, Kodak still looks like a company that is lacking in innovation.

Sahm Adrangi has made smart investments throughout his entire career. If he believes that Kodak’s stock price will decline in the coming months, investors should heed his warning.

 

https://www.institutionalinvestor.com/images/416/Sahm_Adrangi_bio.pdf

Jeff Yastine Was Right About Whole Foods Merging With Amazon


Jeff Yastine is a visionary. When the merger between Amazon and Whole Foods was first announced, he said that it would be a big setback. It turns out that he was right, as he often is. Posts on social media have started to appear about the deteriorating quality of the shopping and of the fruit in Whole Foods. For example, in one post, the shopper said that there were fruit flies and mold in the fruit, and that the manager just said that it happens in California. In addition, the people who worked at the store, according to the poster, were too busy hanging out to help.

Now, it is possible that this is just the kind of person who likes to complain. However, says Jeff Yastine, if you look into the bigger picture, you will find many things that are alarming.

Read more about Jeff Yastine at investmentu.com to know more.

John Mackey said in a speech that the merger was very challenging. John Mackey is the CEO of Whole Foods. Although it is challenging, he said, he thinks that Amazon and Whole Foods can do great things together. To the casual observer, those words may not seem like much, but to someone who wants to take a second to read in between the lines, it becomes quite clear that he may be portraying a sense of optimism that is shadowed by various challenges that keep coming up which are making the transition very hard and preventing the benefits they expected to get from the merger from materializing.

Jeff Yastine believes that not only are the experts who think so correct in their analysis, but that it is very possible that John Mackey’s tenure at Whole Foods after it was bought by Amazon may soon be over. More info about Jeff Yastine at tumblr.com

Jeff Yastine said at the time of the deal that it makes no sense for the two companies to go hand in hand. After all, Amazon is all about the cheapest products on demand. Whole Foods is not about that. Their prices are not known for being so cheap. What they are known for is their ability to offer and provide high quality fruit and other food products. They are also known for their high quality customer service. Mixing the two together can have disastrous results, and prices do not even seem to be going down at Whole Foods.

Jeff Yastine is the Editor of Banyan Hill Publishing and Total Wealth Insider.

Read:https://www.stockgumshoe.com/tag/jeff-yastine/

Capital Group’s CEO Challenges Warren Buffet

Timothy Armour is the Chief Executive Officer of Capital Group, home to American funds and one of the biggest fund managers in the world. Timothy Armour recently challenged an assertion made by Warren Buffet—something Buffet believes in so deeply that he bet 1 million dollars on it.

Buffet recently wagered one million dollars on the premise that passive index funds are the best investments for retirement plans. He believes that inventing in an S&P 500 fund would make more money than if he places funds with hedge fund managers. The one million at stake would go to charity should Buffet win the wager.

Armour concedes that Buffet may win this bet, as some hedge funds turn out to be costly for investors. However, Armour believes that the issue is not about whether passive index funds are better than active ones—but about what investors receive in the long term. He also doesn’t believe that passive index funds are the safest place to put mutual retirement funds.

Although there are actively managed funds that have shown poor returns—there are others that have done the opposite. For example, an investor who placed $10,000 forty years ago in the S&P index fund would have returns of more than half a million dollars today. However, if that same investor had placed his investment in high-performing funds, he would have made even more than half a million dollars on his original investment. Armour believes that the key is finding fund managers who do their due diligence.

Named CEO of Capital Group on July 28, 2015, Mr. Armour graduated from Middlebury College with a degree in Economics and has more than 30 years experience in the finance industry. Recently, he played a key role in developing the partnership between Samsung Asset Management and Capital Group.

Sam Tabar Offers Investment Advice For The New Year

The new year is under way and many people are setting resolutions in order to make 2017 the best year ever. Their resolution may be to lose weight, make more money, or stop smoking. Sam Tabar can help with one of those.

Tabar, a Columbia Law School graduate, and capital strategist has some advice for those who are looking to invest their money in the new year.

According to a study conducted by Fidelity Investments, 54% of people make financial resolutions every year. Many of them are looking for a quick score or a large payday. According to Tabar, this could be a mistake and put the investor in worse shape than when they started.

Commodities

Sam Tabar suggests that those investors who want to see their money grow this year should stay away from commodities. His reasoning is that they are just too volatile for the average or novice investor.It takes a lot of research to profit in commodities and many investors cannot withstand the sharp declines in commodity prices, Tabar advises.

Social Entrepreneurship

One area that Sam Tabar himself is investing in is social entrepreneurship. He is looking for those companies that give back to communities and work to help better the lives of citizens all around the world.

One company that he has identified is THINX, a socially conscious company that manufactures women’s undergarments. Every time THINX makes a sale they donate seven sanitary pads to AFRIpads, who then distributes them to women in need in Africa.

It is companies like this that not only turn a profit but also help make the world a better place.

Diversification

No matter what path the new investor takes, Sam Tabar believes that portfolio diversification is key. You do not want to have all your eggs in one basket. The reason for this is simple. Tabar knows from experience that the hot stock or mutual fund that everyone is talking will eventually come back dow to earth.

Tabar has one more piece of advice for the investor; start today. One year from now you will look back and either be happy that you started investing or wish you had.