Each hedge fund has its own special characteristic. How could one describe the asset mix of the Fortress Investment Group? Would it be fair to claim that the Fortress Investment Group assets provide the playground castles for the wealthy?
Originally, Henry Ford’s financial supporters wanted to create an automobile company that would sell exclusively luxury motor vehicles. This had actually been the norm for most car companies of his age. Of course, wealthy people could afford horseless carriages.Eventually, Henry Ford was able to use his assembly line to dramatically lower the cost of making cars, so he could sell them to every man. But, the Ford marketing strategy still compared the benefits of their horseless carriage to the horse carriage of the wealthy. On the other hand, many Fortress’ assets are focused on the luxury market.That should not be a surprise since co-founder Randal Nardone was previously a managing director of Swiss based UBS. The Swiss are experts at providing high-quality watches, machinery and equipment to their well-heeled clientele. The Fortress Investment Group seems to offer assets to fulfill all of the needs of the wealthy.
Resorts & Casinos
If the wealthy wanted to rest and relax for the weekend, they could find many destinations at the Intrawest Resorts Fortress holding. This is North America’s largest ski resort operator. It was also key to the Fortress’ support of the 2010 Winter Olympics.If the wealthy want to play some games or bet on horses, then they could visit a Penn National Gaming establishment. Penn National was another important Fortress holding operating in dozens of states. As of December 31, 2017 Penn estimated that it operated 36,200 gaming machines and 810 table games. It also had 4,800 hotel rooms.If the wealthy needed a personal loan, they could apply at Springleaf Financial, which provided personal installment loans. Rich people might be jet setters and Air Castle leased jets to commercial airlines. The Fortress seemed to have rich people’s interests at heart.
Fortress Luxury Relaxation
The truth is that after the 2008 Sub-Prime Mortgage Crisis, many properties around the world fell on hard times, except luxury properties. The land of the 1% elite still held its high value. Therefore, this strategy by the Fortress Investment Group seems to be very wise.The wealthy are willing to pay a premium for products and services. They appreciate the best brands and will not base their decisions solely on price. Therefore, their demand curve will tend to be more inelastic.And, when it is time to retire, the senior citizens seem to have the lion’s share of the wealth, at least in the United States. Therefore, the Fortress holdings of Brookdale Senior Living and Holiday Retirement make good sense. Rich seniors can pay for the best retirement facilities.The Fortress Investment Group has done its research. They have accumulated a number of luxury assets that work well together. These Fortress Investment Group assets create the playground for the wealthy 1% elite.