Fortress Will Return Cash to Investors

Date: Friday, January 23, 2009
Author: Wall Street Journal

About a month after halting redemptions in one of its hedge funds, Fortress Investment Group has agreed to return cash to investors, according to people familiar with the fund.

The turnabout came after the firm renegotiated financing arrangements with its banks. With a combination of steep investment losses and large redemption requests, the fund risked violating its lending agreements.

Fortress's Drawbridge Global Macro fund, which places bets on stocks, currencies and commodities world-wide, dropped 20% in 2008. Investors sought to pull $3.1 billion from the fund late last year, prompting it to halt redemptions.