In 2017, SoftBank Group acquired Fortress Investment Group. The trillion-dollar Japanese conglomerate bought the New York-based investment management firm whole. Many speculated as to what would happen next. Now they have their answer. Fortress is branching out with a new group of funds in an effort to entice new investors into its fold. So far the expansion is going well. Fortress Investment Group is dipping its toe into intellectual property funds buying up asset debts. It garnered a successful $400 million in patent funds. It also earned a whopping $500 million in open-end asset funds, and this number is still increasing.
Underneath all the companies Fortress invests in it is a hedge-fund manager. Investors put money into its various funds, which when go the various business it owns. Since its acquisition it has become the U.S. arm of SoftBank, and if there success record is any indication of Fortress’s future they are definitely in good hands. Open-end asset funds are the most recent example. Read the article about Fortress at dailyforexreport.com
Open-end asset funds are mutual funds that enjoy no restrictions. They are free to accept buy-ins from as many investors as they want. They can also close the doors whenever they want. There is no starting or ending cap. It all relies on the decision of the managers of said fund. If they think it has gotten to big they can stop it. This can cause problems if investors want to put more money in, but it also stops new investors from joining. In this way Fortress Investment Group can nab all the money they want for an endeavor, and then tap out whenever they have reached too high.
Open-end assets funds are bought and sold by their net asset value. This occurs on demand and uses their underlying securities to factor in value. The NAV is calculated at the end of each training day and if a big number of shares have been redeemed investors can get paid. This is done by selling off assets to make the payments. Right now Fortress Investment Group is getting room to run from its new owner, and only time will tell what profits this endeavor brings.