Fortress Investment Group LLC plans to liquidate its macro business run by Michael Novogratz and return funds by the end of the year, the firm said in a statement on Tuesday.
Fortress also said that Novogratz, 50, a principal at the New York-based firm, will be retiring. Its macro business oversaw $2.3 billion at the end of June. Fortress said it will buy Novogratz’s stake in the company.
“This was a difficult decision given my confidence in both the research positions we hold and the talent of our team," Novogratz said in the statement. "But we have had an extremely challenging two years, and I do not believe the current environment is conducive to achieving our best results."
Fortress co-Chairmen Peter Briger and Wesley Edens, and Chief Executive Officer Randal Nardone, said they were "disappointed" in the outcome.
"We are grateful for Mike’s many contributions to Fortress over the years," they said. "While we regret closing a fund that has been productive in the past, we also recognize the market’s reluctance to ascribe value to this strategy even in its best years.”