Their pretax earnings rose to $.20 per share ($100 million), up from $.11 per share last year and beating analysts’ projections by $.05 per share. However, FIG’s current stock price is nearly two thirds lower than it was during the company’s IPO in 2007 when shares were selling for $18.50. While much of this drop can be attributed to the financial crisis of 2008, it is difficult to see FIG reaching those highs again. That being said, the company’s recent performance over the past year has been encouraging. Though their holdings have decreased by 20% since last quarter, Bill Miller’s Legg Mason Capital Management is currently the largest holder of Fortress Investment Group stock with a volume of nearly 2.5 million shares for a total value upwards of $10 million. Diamond Hill Capital is the second leading hedge fund in FIG holdings with a total value of $8.3 million, up 657% from last quarter and comprising about .1% of their total portfolio. Following Legg Mason and Diamond Hill is Leon Cooperman’s Omega Advisors who control just over a million shares of FIG stock, up by 148% from last quarter and worth $4.8 million.
My trade: Buy the Sept 6 Calls for $1.30
Risk: $130 Per 1 Lot
Reward: Theoretically Unlimited
Break-even: $7.30
Greeks of this Trade:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long
