Gareth Henry is an experienced investor who is well known in the financial industry. He has previously worked for some of the largest alternative investment companies such as Fortress Investments Group and Angelo Gordon. He is also representing a significant number of United States companies, where he works as the head of investment relations. His role is to actually represent such prominent organizations at international level. His wealth of experience in credit sector helps him to thrive and make critical decisions. It is evident that investment and credit industry is full of complicated math some of which individuals might fail to understand. However, that is not a huge problem to Gareth Henry as he is actually trained to handle that.
As a trained actuary, Gareth is able to handle all the mathematics and come up with a justifiable argument regarding investment and credit terms. He has also been able to come up with some investment decisions in the alternative industry which have helped companies to earn some profits. According to Gareth Henry, there is a continuous growth in the private industry with a large number of organizations seeking credit for investment purposes. A large number of organizations in the private sector have been investing in a single asset. This strategy is geared towards minimizing losses while at the same time increasing the output of a company.
It remains to be seen whether the new investment strategy will help organizations to maximize their out as compared to the organizations investing in a large number of assets. Gareth Henry notes that it is not only the private entities focusing on investing in a single asset but also a huge number of public sectors are also putting a huge amount of resources in a single asset. There is a new method of investment where organizations are joining hands to invest in a single asset. This means that each entity is only required to provide a particular amount of resources to cater for the entire investment. This strategy is helping organizations to minimize losses. However, companies investing in a single asset have to share the returns.
The Fortress Investment Group refers to an investment management organization that has its headquarters in New York City. The organization was founded in 1998 and has been in operations for over two decades. Some of the notable individuals in the organization include Randal Nardone, Wes Edens, and Pete Briger. The listed individuals co-founded the organization with Rob Kauffman who has since resigned from the organization. Although the Fortress Investment Group started off as private equity, it became publicly traded after being listed in the NYSE in 2007. Two years later, the management had successfully offered more than 8% of the groups’ shares to the public. In June 2016, the group was reported to manage assets worth more than 70.2 million dollars.
The assets were mainly private equity, hedge funds, and credit funds. In 2014, the exceptional contribution of the leaders saw the organization being named the Hedge Fund Manager of the Year. Since then, the group has remained committed to offering quality services and products. Some of the products offered by the organization include traditional assets management, private equity, railroads, hedge funds, and other financial products. It has also successfully managed the assets of major permanent capital vehicles across the globe. They include Fortress Energy Investment Group Inc, New Media Investment Group, New Senior Investment Group, and the New Residential Investment Group. Through the services offered by the Fortress Investment Group, the listed organizations have remained profitable in the past years.
The Merger of Fortress Investment Group with Softbank Group Corp
The Softbank Group Corp. is a Japanese conglomerate that has interests in telecommunication and financial services. In 2017, it exhibited its interests of acquiring the shares of the investment management firm as being one of the ways of improving its financial services. The merger was completed in 2017 which saw the Japanese based company become the parent company of the group. However, the fortress team was retained and allowed to run independent operations. The decision was based on the need to maintain the positive organizational culture that had been created in the past twenty years. Currently, the group has the intention of venturing into other markets such as real estate and energy sectors.
Seeking Alpha has a popular podcast called Behind the Idea. They recently interviewed Wall Street Hedge Fund Manager Sahm Adrangi who is well-known as a trader that often takes short positions on publically traded firms. On this podcast, they asked about his recent short idea and what types of advanced techniques he and his team at Kerrisdale Capital Management take when it comes to shorting stocks.
There’s been a lot of talk during this long bull market that hedge funds are out of style. The trend is towards index investing where you just own the whole market. Others espouse strategies such as quant or other mechanical approaches to investing. However, as Sahm Adrangi shows there is still plenty of room for a manager who analyzes stocks and companies and then selects among them. He says that he hasn’t had too much difficulty investing long in good stocks and shorting companies that he sees as not delivering.
One of the companies who stock Sahm Adrangi recently shorted is Proteostasis (PTI). He and his analysts went over this firm’s Phase 2 data for their lead drug candidate and saw some big issues with it. This company is trying to develop a drug candidate to treat cystic fibrosis. The lead drug candidate, PTI-428, claimed there was a 5.2 percent increase in lung performance shown in their latest clinical trial. He said this was nonsense and the drug barely did better than a placebo.
The Behind the Idea podcast series also talked about another one of his shorts which was St. Joe. This is a Florida land developer that owns a huge tract of land. The long-time plan for this land is to build a giant residential and commercial development. Sahm Adrangi looked into this land and found out it is desolate swamp land in the middle of nowhere. He says there is absolutely no viable way St. Joe’s plan for this land is going to ever be realized. He said that St. Joe was valued at $1 billion with much of that value based on this land. He sees St. Joe as being nowhere worth that amount of money.