Losses swelled in the fourth quarter at Fortress Investment Group, the first private equity and hedge fund firm to list just over two years ago, on writedowns in its private equity funds.

The group lost $140m, or $1.50 a share, last quarter, compared with a loss of $29m or 43 cents a share in the same period last year. The loss was more than analysts expected. Pre-tax distributable earnings - the companyâ??s preferred measure of profits â??showed losses of $258m last quarter after earning $78m the year before, as the group set aside reserves for clawback provisions.

The companyâ??s principal investments lost $265m, with losses of $228m for private equity fund investments and a $27m loss in hedge fund investments. For the year Fortress lost $322m as asset values plunged and investors withdrew their funds.

Last December Fortress suspended redemptions at its flagship Drawbridge Global Macro Fund after investors sought to withdraw more than $3.5bn in funds. The group needs to keep a minimum level of assets or it risks having to unwind derivatives trades.

Fortress went public in February 2007. Their shares are trading at $1.58, down more than 90 per cent from their initial public offering price of $18.50.