Fortress Hedge Fund President Bohart Departs Amid Macro LossesBy
Fortress's Macro Fund lost 9.5% this year through July
Bohart had mostly administrative role, joined in 2010
Stu Bohart, who oversaw Fortress Investment Group LLC’s hedge fund unit, left the firm after five years.
Bohart, the president of Fortress’s liquid markets business, left on Tuesday, said Gordon Runte, a spokesman for the New York-based firm. He joined in 2010 from Morgan Stanley.
The departure, reported earlier by the Wall Street Journal, comes as Fortress faces losses in its biggest hedge funds. Its macro fund, with about $2.3 billion, was down 9.5 percent this year through July, according to a regulatory filing, and its Convex Asia funds slipped 1.5 percent. Its Centaurus Global Funds, started last year, lost 3.1 percent.
Bohart, who previously was co-head of Morgan Stanley’s asset-management unit, didn’t return a phone message seeking comment. He had mostly administrative responsibilities for the Fortress business. The investing is overseen by Michael Novogratz, one of the firm’s four principals and the macro fund’s chief investment officer.
Novogratz took sole control of the macro fund’s investments in July, after Jeff Feig and most of the pool’s other managers agreed to leave. Fortress managed $2.3 billion in the macro fund and separate accounts as of the end of June, down from $3.4 billion a year earlier.
“Hopefully by the end of 2016, liquid markets is a contributor” to Fortress’s profits, Novogratz said on a July conference call with analysts and investors.
Fortress, founded in 1998, became the first private equity and hedge fund manager to sell shares to the public when it held an initial public offering in February 2007. The stock has fallen 30 percent this year and 70 percent since the IPO.
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