Randal Nardone Uses Diversification to Shield the Company against Financial Losses

Randal Nardone is a co-founder and one of the chief executive officers at Fortress Investment Group. He has performed a fundamental role in the foundation and development of this entity to the stage where it has expanded enough to become one of the largest alternative asset managers in the world today. His skills and knowledge have seen him propose some of the best policies that have benefited the organization for a more extended period. One of the main strategies that Randal Nardone formulated and implemented at Fortress Investment Group using diversification as a method of minimizing the risks that are likely to face the company.

Through the leadership and guidance of Randal Nardone, Fortress Investment Group diversified its portfolio such that its assets could be traced in different industries and even locations. For example, you will find that Fortress Group has significantly invested in infrastructure projects, housing projects, and significant stock on the New York Stock Exchange and currently in the healthcare industry. Investing in different sectors offers the company the best shield against uncertainties and risks that face the market on a daily basis.

In scenarios where the market is faced with uncertainty, for example in the real estate market, Fortress Group will only lose all the assets in the real estate portfolio, but other investments in other industries will continue to provide profits to the organization. This will help the organization to proceed with its operations as it tries to recover the losses while simultaneously trying to reassert its authority back in the real estate market after the market crash. However, other organizations that had purely invested all their assets in the real estate industry are likely to collapse and will not be able to come back into the market.

Randal Nardone offered a reasonable solution that would help the firm continue with its operations despite the increasing risk levels which are currently brought about by the changing consumer behavior, innovative technology, and political instability around the world. Investing in different locations was geared towards ensuring that the company has a global foothold in various parts of the world rather than restricting its operations in the United States which would make it look like a local company.

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