I woke up to a pleasant but also slightly bittersweet surprise today over my morning
coffee – overnight (I reside in Asia) Softbank had announced a bid to buy out
Fortress Investment Group (FIG US) Class A shareholders @ US$8.08 a share. This
was an approximate 40% premium to the stock’s previous price, and 66% above the
levels prevailing at the commencement of 2017.
FIG was a 1% position in the
primary portfolio I manage (larger in some others), and was
acquired in stages over the past six months at a US$5.21 average. I bought my
base position (about half) at approximately US$5.00, and I then bought the
break-out in January, doubling my position in the US$5.30-5.50 range. A 50-60% gain in less than six months is nice. But it's much nicer on a 5-10% position than a 1% position. I didn't know whether to celebrate or beat myself up for not buying more. More on that later.
