Fortress's Mike Novogratz: There's Only One Reason The Dollar Is A Good Long Right Now

novogratzMike Novogratz of Fortress

The manager of the huge $47 billion macro fund Fortress, Mike Novogratz, is going long the dollar vs the Euro, UK pound, and the Australian dollar, according to Dow Jones.He says there are four things hurting the dollar:

  • The political dysfunction in the U.S. – The U.S. has its own deficit problems, on display in the recent battle in Congress over raising the debt ceiling.
  • U.S. debt – “People do not think America has suddenly gotten religion” on getting its fiscal house in order.
  • The limp economy¬†
  • The Fed’s pledge for near-zero interest rates until at least 2013¬†

However there’s one thing that makes the dollar look good:

  • The Euro —¬†90% of the market’s attention is now spent dwelling on a resurgent euro-zone debt crisis, which looks worse by the day, driving nearly all new trades.

From Dow Jones:

[Novogratz says he] made new bets to go long the dollar against the euro, U.K. pound and the Australian dollar. He said he believes the euro could hit the $1.25 to $1.30 range by the end of the year from its current $1.37 level, based on the euro zone’s worsening debt crisis.

Fortress has lost 7% YTD so far.

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