Oppenheimer Reports Stronger Than Expected Incentive Fees For Fortress Investment Group

In a report published by Oppenheimer, Fortress Investment Group's FIG 4Q10 results saw stronger than expected incentive fees and solid fund performances. According to Oppenheimer, FIG reported $0.24 of distributable earnings per dividend unit for 4Q10, exceeding our estimate of $0.18. “The beat came mostly from better than expected incentive income of ~$0.16 per unit, offset by higher than expected operating expenses of ~$0.09 per unit. Net fee-related earnings (NFRE, our earnings metric consistent with BX and KKR) came in at $0.05 vs our estimate of $0.09 due to higher than expected expenses.” Fortress Investment Group closed yesterday at $6.25.