FIG (Fortress Investment Group)

Fortress is the first public Alternative Investment company and the IPO was met with a lot of enthusiasm. The stock came public at $19 and immediately traded to a high of $37 before closing at $31. I got a small allocation but with that kind of move, every bit of stock helps.

After the stock came back in some on declining volume, it began to show life on Wednesday and so I picked up 5,000 shares. The multiple on the stock is very reasonable although it is hard to tell just where forward earnings will be since most earnings are tied to manager performance which is difficult to forecast.

It will be interesting to see how the stock performs with professional and retail investors alike trying to build positions in this name.

Feb 23, 2007

The stock has traded relatively well selling off a bit but finding its footing and trading back up. There has been some insider buying which helps confirm the smart money is after this name and so today I picked up another 5,000 shares to add to my winning position. This is not a long-term hold in my opinion as there is not enough information out there to fully evaluate the stock, but the available information point to higher prices and I think the risk reward profile supports taking a small position on this potentially explosive name.

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