Hedge fund Fortress Investment Group is planning to buy Fremont Investment & Loan's subprime operations, according to sources close to the deal. The acquisition, which is awaiting due diligence and a final agreement, would be the second such deal for Fortress. The firm acquired subprime lender Centex Home Equity in July of last year.

Fortress did not return a request for comment by press time. The recent purchase helps to solidify an emerging role among hedge funds as supporters of the subprime lending market.

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