Komfie Manalo, Opalesque Asia: Fortress Investment Group principal and director Michael Novogratz announced he would shrink the macro hedge fund unit of the firm as losses mounts and help turn round performance that has been struggling since last year.
On Thursday, Novogratz said that Fortress’ flagship hedge fund sustained a $6 million pre-tax loss as he expressed confidence the second half will be more profitable for the company because of fresh investment opportunities across the globe provides more room for growth, coupled with a simpler and leaner management structure that he has implemented, Reuters reported.
Share prices of the New York-based hedge fund firm fell about 14% since January this year, and dropped three percent in early trade. Fortress manages at least $72 billion in assets, up 13 percent compared to last year. But its assets in its liquid hedge funds fell shrunk to $7.4 billion, or down six percent, after recording a $6 million pre-tax loss during the last quarter.
Novogratz told investors during a conference call, "We started the year with big losses and have moved sideways since then," and added that "the macro set is as rich as I've seen and that a simpler management structure should go a long way to boosting returns again."
He added that Fortress is currently "right-sizing the business, scaling it down to an appropriate siz...................... To view our full article Click here
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