Michael Novogratz the Chief Investment Officer at Fortress Investment Group decided to retire in 2015 after lackluster results in the Macro Fund that he created and it, in turn, will be closed by the company. Michael Novogratz retires from Fortress Investment Group after 11 years of successful leadership and guidance over there Macro Fund that has produced extremely high levels of returns on investment over the years. However, over the last 2 years, the fund has struggled to beat results that were planned. In fact, the fund dropped more than 17% in 2015 and required the company to make drastic decisions about the continuation of the Macro Fund into the future. Michael was strategic in establishing the fund in 2002 and has provided the leadership as the Chief Investment Officer throughout the duration. Michael states that he is comfortable with the skill of his management team within the Macro Fund and also with the analytical and research positions established within the fund.
Because of the poor performance over the last couple years, it was inevitable that this fund would no longer remain a part of the Fortress portfolio due to the lack of credible opportunities for the fund to rebound and establish a strong foothold within the current climate of the economy with regard to the financial instruments within the fund. As part of the agreement for the retirement of Michael Novogratz, he will receive a payment of $255.6 million for his shares within Fortress. Michael provided high-level leadership and guidance over the fund over the years after he came to Fortress in 2002 with an extremely strong background and experience as a graduate of Princeton University and also a helicopter pilot from the US Army. He is one of the strong assets that provided a strong and valuable foundation for the company’s success over the years. Before joining Fortress Michael was a valuable member of Goldman Sachs one of the more esteemed and reputable investment firms in the world. When Michael Novogratz joined Fortress Investment Group in 2002 he developed the Macro Fund and quickly begins guiding that it into a strong profitable position within the company and within the investment industry.
After years of successful positions within the fund, Michael developed a strong portfolio both personally and professionally and assisted in the ascension of Fortress Investment Group into one of the most powerful alternative asset investment firms in the world. In fact, in 2007 Fortress became the first alternative asset buyout company to be traded on the New York Stock Exchange and created paper billionaire status for its founders after the company went public. The company currently is run by Co-Chief Executive Officers Wes Eden’s and Peter Briger who are also co-founders of the organization and continue to provide extremely high-level governance over the organization that is translating into success and profitability for the more than 1750 institutional and individual investor clients. The decision to close the Macro Fund, and the retirement of Michael Novogratz will provide an opportunity for the company to rid itself of this underperforming asset class and will allow those resources to be better utilized in one of the more profitable asset categories within the organization that will provide continued high rates of return on investment for the company.