Fortress Profit Misses Estimates as Hedge Fund Returns Fall

Fortress Investment Group LLC, the first publicly traded alternative-asset manager in the U.S., reported third-quarter profit that missed analysts’ estimates as hedge-fund returns slumped.

Pretax distributable earnings, which exclude some compensation costs and other items, increased 1.6 percent to $65 million, or 13 cents a share, from $64 million, or 12 cents, a year earlier, New York-based Fortress said today in a statement. Analysts expected per-share profit of 15 cents, according to the average of seven estimates in a Bloomberg survey. The shares fell 4 percent in New York trading.