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 for the benefit of its shareholders in mortgages and mortgage-related securities as well as in a merchant banking portfolio of equities and other long-term assets. 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 and natural resources, financial institutions, healthcare, insurance, real estate, and technology, media and telecommunications. 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 area, our Washington Economic and 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 the end of the first quarter of 2007, are market-makers or traders in more than 880 securities and provide independent research on more than 570 companies representing 35% of the S&P 500 by market capitalization.
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 funds2. Our Private Wealth Group offers a broad array of services to high net worth investors, institutions, and foundations.