Fortress Investment Group Turning Undervalued Assets into Gold

Fortress Investment Group is a firm headquartered at New York City, United States. The entity has been offering financial services in asset management and investment services. In recent years, the body has attained significant levels of growth making it one of the most reputable organizations around the world. However, it is the ability of the organization in investing in an alternative that has received accolades across the globe. Alternative investment companies have been investing in lucrative areas that are growing. The only problem with this strategy is that all investors focus in such areas making returns on investments to be very low. Fortress Investment Group has chosen to avoid extreme competition by choosing to focus on assets that nobody else is focused on such assets. This is because such assets are undervalued and underrated.

Due to low competition and the negative perception towards such assets, the company has been acquiring such assets at discounted rates. The company has purchased a significant number of undervalued assets in the United States and other parts of the world. Owning such assets have made Fortress Group to become one of the most significant asset managers with regards to the asset base in the country.However, owning a large number of undervalued assets does not say it all, the entity can sell the assets at significantly huge profits making almost 100% on gains. To maintain this trend, Fortress Investment Group has been acquiring assets in the transportation industry, mostly in the railway sector, which are undamaged by undervalued. These assets have the potential to generate cash-flows for a continued period.

Moreover, it is the ability of most of the undervalued asset to be involved in mega development projects that make them most attractive. Acquiring an old railway line may be seen as a poor investment decision by a layman, but to the eyes of Peter Briger, the mind behind investment in undervalued assets, that is an asset with the potential of generating income to the entity for more substantial periods hence sustaining the entity’s profitability. Fortress Investment Group has been using this strategy for quite some time, and it will be an understatement to indicate that the approach has worked. The most important aspect of this type of investment is that it is not attractive and does not attract many investors, who would increase demand causing the investment to have low returns owing to high initial cost.

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