During difficult times, the masses will rush to the nearest fortress for safety. This is what investors did with the Fortress Investment Group. How did Fortress Investment Group Co-Founder Randal Nardone build a fortress of financial strength?
Fortress of Financial Strength
The financial sector changed forever on February 9, 2007 when the Fortress Investment Group went public. For years, the wealthiest had been able to gain tremendous profits from hedge funds. Now, everyone could benefit.
Fortress Investment Group Co-Founder Randal Nardone was a little like “Robin Hood.” He took the previous privileges of the wealthy and made them available to every man. This leveled the financial playing field.
Technology had advanced tremendously. Already, the top Wall Street banks were making consistent profits due to their computer algorithm technology and sophisticated trading strategies. Fortress Investment Group could use these proven strategies to deliver consistent results.
This was great news for institutions who had extra capital to invest and did not want much uncertainty. They could discuss their risk tolerance with Fortress Investment Group representatives, who could tailor the perfect portfolio for them.
Budgeting became easier for institutional investors. Large institutions could make more definitive plans for future developments based on the calculations of their consistent returns, delivered by hedge funds. Everyone benefited.
The institutions got the highest return on investment (ROI). The hedge funds got business, managing billions of dollars. The public was able to enjoy more successful developments. These led to job growth and tax revenue also.
SoftBank Acquires Fortress
While moving to the public realm can open up many avenues for the regular man, there are also many potential negatives to the strategy. Perhaps, this is what Co-Founder Randal Nardone determined when he and his co-founders sold the Fortress Investment Group to SoftBank. The financial industry always has mergers and acquisitions.
Public companies must follow many regulations. While it is beneficial to have more investors, it is also more difficult to run a successful company. There are many conflicting interests that might lead to a financial firm losing focus.
“Too many cooks spoil the brew.”
When the Fortress Investment Group was smaller, Executive Randal Nardone could more easily direct its future. When there were public investors, it was more difficult to enact certain hedge fund strategies. Selling the firm to SoftBank gave Executive Randal Nardone, a new lease on life. SoftBank was like a knight in shining armor.
Contact Randal Nardone: www.marketswiki.com/wiki/Randal_A._Nardone