Keefe Bruyette & Woods Comments On Fortress Investment Group After Reporting In-Line Earnings

Generally speaking, Keefe Bruyette & Woods characterizes Fortress Investment Group's FIG quarter as in-line to slightly weaker with slightly lower DE, and modestly weaker capital formation. However, KBW thinks capital raising should remain positive and no change to estimates or target. KBW maintains an Outperform rating and $7.50 PT on FIG. Fortress's revenues and earnings are highly sensitive to the investment performance of the company's underlying investment products. Many of FIG's investment strategies entail leverage and there is limited transparency into many of its investment products. Given the importance of the performance fees to FIG's revenues and earnings, financial results can be volatile. FIG also has key man risk; the loss of any of the principals' services could have a negative impact on assets, revenues and earnings. FIG is trading higher at $5.80