Bay Pond Partners Snapped Up Fortress Investment Group LLC (FIG) Shares

Bay Pond Partners, a long/short equity hedge fund managed by Nicholas Adams, revealed a 5% stake in Fortress Investment Group LLC (FIG). FIG shares which stood at $5.15 on Friday were trading at $8 a year ago. At first glance the stock seems cheap. The company recently tried to buy back a large number of shares in a tender offer after the stock fell below $4 but failed to capitalize on this opportunity. It bought only 4.8 million shares at $4.75 per share. It could have bought back many more shares at much lower prices if the company decided to make open market purchases.

We don’t know much about Bay Pond Partners’ recent performance but Wellington Asset Management’s hedge fund actually managed to outperform the market by a large margin between its inception in 1994 and 2011. It returned 22.5% annually during this period. It returned 20.85% in 2010, 67.4% in 2009, and 30.2% in 2007. Bay Pond Partners lost 20.9% in 2008.

Fortress Investment Group LLC (FIG) didn’t excite a lot of hedge funds at the end of 2015. Heading into 2016, a total of 18 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -14% from the third quarter. According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Jody LaNasa and Vivian Lau’s Serengeti Asset Management has the most valuable position in Fortress Investment Group LLC (NYSE:FIG), worth close to $39.2 million, corresponding to 7.3% of its total 13F portfolio. Sitting at the No. 2 spot is Michael Barnes and Arif Inayatullah of Tricadia Capital Management, with a $27.9 million position; the fund has 6.6% of its 13F portfolio invested in the stock. Remaining members of the smart money that hold long positions encompass Ric Dillon’s Diamond Hill Capital, Howard Marks’s Oaktree Capital Management and Eric Halet and Davide Serra’s Algebris Investments.

Bay Pond Partners’ recent filing puts it at the top of the list. The details of this filing can be seen below:

Ownership Summary Table

Page 1 of 4 – SEC Filing

Page 2 of 4 – SEC Filing

Bay Pond Partners, L.P.2.CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

(a) [ ]
(b) [ ]3.SEC USE ONLY4.CITIZENSHIP OR PLACE OF ORGANIZATION

Delaware

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

5. SOLE VOTING POWER06. SHARED VOTING POWER

11,115,807

7. SOLE DISPOSITIVE POWER08. SHARED DISPOSITIVE POWER

11,115,807

9.AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

11,115,80710.CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES

[ ]11.PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

5.03%12.TYPE OF REPORTING PERSON

PN

Page 3 of 4 – SEC Filing

Bay Pond Partners, L.P.
 (b)Address of Principal Business Office or, if None, Residence
c/o Wellington Management Company LLP
280 Congress Street
Boston, MA
02210 (c)Citizenship

Delaware
 (d)Title of Class of Securities
Class A Common Stock (e)CUSIP Number
34958B106Item 3.If This Statement is Filed Pursuant to
Rule 13d-1(b), or 13d-2(b) or (c),
Check Whether the Person Filing is a: (a)

[ ]

Broker or dealer registered under Section 15 of the Act (15 U.S.C. 78o). (b)

[ ]

Bank as defined in Section 3(a)(6) of the Act (15 U.S.C. 78c). (c)

[ ]

Insurance Company as defined in Section 3(a)(19) of the Act (15 U.S.C. 78c). (d)

[ ]

Investment Company registered under
Section 8 of the Investment Company Act of 1940
(15 U.S.C. 80a-8). (e)

[ ]

An investment adviser in accordance with
Rule 240.13d-1(b)(1)(ii)(E);

(f)

[ ]

An employee benefit plan or endowment fund in accordance with
Rule 240.13d-1(b)(1)(ii)(F); (g)

[ ]

A parent holding company or control person in accordance with
Rule 240.13d-1(b)(1)(ii)(G); (h)

[ ]

A savings association as defined in
Section 3(b) of the Federal Deposit Insurance Act
(12 U.S.C. 1813); (i)

[ ]

A church plan that is excluded from the
definition of an investment company under
Section 3(c)(14) of the Investment Company Act
of 1940 (15 U.S.C. 80a-3); (j)[ ]Group, in accordance with Rule 240.13d-1(b)(1)(ii)(J).  If this statement is filed pursuant to Rule 13d-1(c),
check this box [X]Item 4.Ownership.Provide the following information regarding the aggregate number and
percentage of the class of securities of the issuer identified in Item 1. (a)Amount Beneficially Owned:

11,115,807

(b)Percent of Class:

5.03%

(c)Number of shares as to which such person has: (i)sole power to vote or to direct the vote0 (ii)shared power to vote or to direct the vote

11,115,807

(iii)sole power to dispose or to direct the disposition of0 (iv)shared power to dispose or to direct the disposition of

11,115,807

Item 5.Ownership of Five Percent or Less of Class. If this statement is being filed to report the fact that
as of the date hereof the reporting person has ceased to
be the beneficial owner of more than five percent of the
class of securities, check the following:
[ ]Item 6.Ownership of More than Five Percent on Behalf of Another Person.

Not Applicable

Item 7.Identification and Classification of the Subsidiary Which Acquired
the Security Being Reported on by the Parent Holding Company.

Not Applicable.

Page 4 of 4 – SEC Filing

Notice of Dissolution of Group.

Not Applicable.

Item 10.

Certification.

By signing below I certify that, to the best
of my knowledge and belief, the securities
referred to above

were not acquired and are not held for the purpose
of or with the effect of changing or
influencing the control of the issuer of the
securities and were not acquired and are not held
in connection with or as a participant in any
transaction having that purpose or effect.

SIGNATURE