Category: Investment Services

What Did Randal Nardone Gain When Softbank Acquired Fortress Investment Group?

Successful investors know when to “hold them and fold them.” The Fortress Investment Group was the first hedge fund to go public. But, eventually it was sold off to SoftBank. What did Fortress Investment Group Co-Founder Randal Nardone gain when SoftBank acquired his company?

Dramatic Rise to Top

Financial expertise is not gained in one day, it takes a long arduous journey. That might be what Business Executive Randal Nardone has learned. He started as a partner of the Thacher Proffitt & Wood Law Firm.

Randal Nardone was a managing director of UBS from May 1997 to May 1998. This might have allowed him to gain the expertise to determine the most profitable hedge fund strategies. He also learned how the best global financial brands operated.

On February 9, 2007, the Fortress Investment Group made history as the first hedge fund to go public. The firm managed an estimated $70 billion in 2016. Institutions had become flush with money and needed a viable way to earn the best return on investment (ROI). Fortress satisfied this need.

One of the many functions provided by the Fortress Investment Group was under its subsidiary, New Residential Investment. New Residential Investment purchased mortgage servicing rights. Building its business on housing finance is a secret to the success of the Billionaire Randal Nardone’s Fortress.

SoftBank Keeps Nardone in the Game

Timing is essential to earning the best profits. For centuries, the US property market slowly yawed upwards. Then, when it was denominated in the 1990s, it shot straight up. Fortress Investment Group rode that wave higher.

But, when the housing market soured, Fortress Investment Group Co-Founder Randal Nardone understood that it was time to sell. All of the value built up over the years needed to be retained. A sale to SoftBank offered the perfect vehicle. SoftBank paid $3.3 billion in cash for Fortress on February 14, 2017.

“What did Randal Nardone gain from the sale?”

Randal Nardone had a nice run for almost a decade. He had become a billionaire and new that the housing and financial markets were changing. He was able to earn a nice profit by selling to a powerful financial firm.

Mr. Nardone was able to stay in the game. He had made a good exit from an untenable position. No one could take away the fact that the Fortress Investment Group was the first hedge fund to go public.

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Paul Mampilly Believes The Bitcoin Bubble Is About To Burst Like 1999’s Tech Problems

Paul Mampilly is well-known for giving amazing advice on the latest matters on the financial markets because of the almost quarter of a century he has built up during his career. One area Paul Mampilly has been extremely vocal in is the development and potential bubble growing up around the Bitcoin cryptocurrency; Paul Mampilly believes the current spiraling value of cryptocurrency is unsustainable and will eventually lead to the bubble bursting in the coming weeks or months.

Bitcoin has reached values in excess of $19,000 but Mampilly believes the growing clamor among investors to jump on the bandwagon will push prices even higher and create a bubble bursting to leave thousands of new millionaires broke when the Bitcoin price plummets in the coming weeks. The former leader of a hedge fund named one of the best performing funds in the world by Barron’s in 2008 believes the current climate around cryptocurrency is similar to that seen around the tech sharemarket in 1999. The crash of the tech market in 1999 came after a bubble grew around companies offering shares before they had even established themselves in any sector of the technology industry.

Millions of investors saw their fortunes wiped out over the course of a single day when the value of many tech stocks plummeted and the majority of newly formed businesses ceased operating amid growing debts. Paul Mampilly became famous for not losing any money during the 1999 crash as he correctly identified the market was about to crash and escaped long before the issues reached their peak.

Over the course of the last few years, the man who classes members of Europe’s Royal Family’s and the Royal Bank of Scotland among his list of clients has been warning of similar problems ahead for the cryptocurrency boom. In fact, Mampilly explains he set out to warn investors of the problems facing the cryptocurrency bubble but has been met with resistance from many of those who have invested in this new form of currency. The Bitcoin bubble has created a number of converts to the development of this form of investment and will see those who refuse to take advantage of the current high prices for Bitcoin lose the majority of their investment when the crash finally happens.

Paul Mampilly’s Social Media: twitter.com/Paul_M_Guru