The Scot is still searching for his first win since succeeding Gareth Southgate after Robert Earnshaw maintained Forest's unbeaten away record.
"I felt we could have won, but the most likely team to win this game was Nottingham Forest," he admitted.
Opposite number Billy Davies, while admitting that his side were poor in the first-half, added: "After one or two choice words at half-time we came out and showed what we are all about.
"I'm pleased because of the reaction. I'm very proud of the run that we're on and the away record that we carry."
It's back to the City Ground next week for the Reds as they host a Doncaster side buoyed by a 2-0 win over QPR.