Fortress Warns of Emerging Market Bear

New York (HedgeCo.net) – Fortress Investment Group has been making a lot of news in recent months, but most of the news has been about the performance of their funds and departures of personnel, but they are making some news now for a letter to investors dated September 30. The letter was signed by CIO David Dredge, and fund managers Nicholas Heaney and Andy Wong and the contents of the letter were featured in a recent article from Bloomberg.

Among the predictions in the letter is that the current credit contraction will last until March 2017 at the very least. “Our view is that we are in the beginning stages of the next contractionary cycle, and this cycle, similar to 1997-1998, is commencing on the emerging market side of the global imbalance. We believe we are three weeks into what is likely an 18-plus month contractionary period, using past cycles as a guide.”

While Fortress’ macro fund has lost 17.2% on the year through the end of August, the Asia-focused fund has managed a small gain of 1.4% on the year.

Rick Pendergraft
Research Analyst
HedgeCoVest

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