Fortress Marco Plans To Close As Michael Novogratz's Bets BackfireVW Staff
Fortress Investment Group is planning to close its Fortress Marco fund managed by Michael Novogratz, according to Bloomberg based on information from a person familiar with the situation.
The report indicated that Fortress Investment Group will inform investors regarding the closure of its macro fund over the next few days.
The stock price of Fortress closed more than 3% to $5.44 per share today. The stock declined further by almost 7% to $5.07 per share during the extended trading, around 4:40 in the afternoon in New York.
Fortress macro fund fell 17%
The Fortress Marco fund suffered a 17% decline this year through September 25 after a management shakeup, according to an investor. Novogratz, a former U.S. Army helicopter pilot and Goldman Sachs executive became the sole manager of the macro hedge fund in July.
During an earnings call last month, Novogratz said he though the Federal Reserve would increase interest rates in September. He also believed that there were plenty of opportunities while China’s economy slowdown. He also stated that he was taking direct control of the macro fund, which declined 4.4% in August as the global financial market suffered a selloff due to China’s economic slowdown. In September, the macro fund fell 4.3%.
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