For those in or following FIG, here’s an excerpt from an article posted in the NY Times’ DealBook blog:
The walls of Fortress Investment Group appear to spring another leak on Tuesday. 
Excerpt: "Shares in the private equity and hedge fund firm tumbled more than 15 percent to $10 after a Citigroup research analyst cut his rating of the firm to “sell.” That analyst, Prashant Bhatia, painted a bleak picture of Fortress’s future, pointing to diminishing returns and potentially more pain for the firm’s shareholders.
‘In our view, the risks associated with FIG now outweigh the potential rewards,’ Mr. Bhatia wrote in a research note.
To be sure, Fortress has been hard hit by the credit squeeze, as have other private equity firms. It poses an inauspicious environment for Kohlberg Kravis Roberts to join Fortress and the Blackstone Group on the stock markets, where the firms are forced to make far more disclosures than they may like.
But Mr. Bhatia wrote that his reservations apply solely to Fortress, and that he remains bullish on Blackstone’s prospects. Unlike Fortress, Blackstone is better diversified, and has a history of improving the businesses it acquires, he wrote. That doesn’t apply to Fortress, however.
‘While we view Fortress as a firm that can benefit during times of distress, the reality is that the firm does not have a track record spanning multiple cycles,’ he wrote. ‘This raises the question of whether this firm prospered as a result of the credit bubble and now may not be able to repeat its past success.’…" Full article here.
