Investors are pulling their money out of Fortress Investment Group.
According to the Wall Street Journal, Fortress disclosed in its fourth-quarter earnings call that investors have taken back about $US800 million in funds, which accounts for 25 per cent of the firm’s $US3.2 billion assets under management.
The fund, run by Michael Novogratz, was down 1.6 per cent at the end of 2014, compared to an average return of 5.7 per cent among other macro hedge funds.
Macro funds faced difficulties at the beginning of last year, and Fortress was no exception. Among Novogratz’ bad calls, the WSJ listed several mistaken predictions on U.S. government bonds, the Japanese yen, and the Brazilian presidential election.
Fortress’ fund isn’t the only macro hedge fund to see investors withdraw. The WSJ reported that investors in rival firm Carlyle Group withdrew $US2.5 billion since October.
Since the beginning of this year, the fund is down almost 6 per cent.