Understanding FBR
Founded in 1989 with an initial investment of $1 million, Friedman, Billings, Ramsey Group, Inc. (FBR Group; NYSE:FBR) is a real estate investment trust (REIT) that invests in mortgage-related assets and merchant banking opportunities. Most of the income from these principal investments is untaxed at the corporate level and is passed directly on to shareholders as taxable dividends or capital gains.
FBR Group is also the majority owner of FBR Capital Markets Corporation (FBR Capital Markets; NASDAQ:FBCM), a top ten investment bank1 with an international franchise and one of the strongest equities distribution capabilities in the securities industry.
FBR Capital Markets, FBR Group’s principal taxable subsidiary, is a full service investment banking, institutional sales, trading and research and asset management firm with a customer-focused and innovative approach to meeting its clients needs. It focuses its banking, advisory, trading and research efforts in eight broad industry sectors – consumer, diversified industrials, energy & natural resources, financial institutions, healthcare, insurance, real estate, and technology, media & telecom. In 2006, these sectors accounted for 79% of all U.S. equity capital raised and 76% of equity securities traded. With our headquarters in the Washington, D.C. metropolitan area, our Economic and Washington Policy Analysis groups offer clients a comprehensive overview of national economic trends along with a unique perspective on the impact that legislation and regulation will have on industry sectors and individual companies.
FBR Capital Markets’ brokers, traders and sales traders, as of February 2008, are market-makers or traders in more than 920 securities and provide independent research on more than 490 companies representing 24% of the S&P 500 by market capitalization.2
On the asset management side of our business, FBR Capital Markets’ registered investment subsidiaries provide clients with a range of investment choices that includes a family of mutual funds, hedge funds and funds of funds.* Our Private Wealth group offers a broad array of services to high net worth investors and foundations.
FBR Group and FBR Capital Markets are headquartered in Arlington, Virginia. FBR Capital Markets also has offices in Sydney, Boston, Dallas, Houston, Irvine, London, New York and San Francisco.
*Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. This and other important information can be found in the fund's prospectus. To obtain data current to the most recent month-end and a free prospectus, please call 888.200.4710 or visit www.fbrfunds.com. Investment return and principal will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original costs. Please read the prospectus carefully before investing. The FBR Funds are distributed by FBR Investment Services, Inc., member NASD/SIPC.
1) Source: Dealogic. As measured by the aggregate value of the
2) As of 2/14/08. Research is provided by FBRC's Research department, which is independent from the Investment Banking department of FBRC, and has the sole authority to determine which companies receive research coverage and the recommendation contained in the coverage. In the normal course of its business, FBRC seeks to perform investment banking and other fee generating services for companies that are the subject of FBRC research reports. Research analysts are eligible to receive bonus compensation that is based on FBRC's overall operating revenues, including revenues generated by FBRC's Investment Banking department. Specific information is contained in each research report concerning FBRC's relationship with the company that is the subject of the report.
