Fortress Investment Group LLC confirmed Tuesday that it will close its flagship macro hedge fund and principal Michael Novogratz will retire after the fund suffered heavy losses and redemptions.... The fund has been hurt by investments in Brazil, a market that has come under pressure in recent months, among other areas, an investor said. Macro funds on average have lost 0.6% this year through September, according to research firm HFR. The Fortress fund manages about $1.6 billion today, down from more than $8 billion in 2007.


The Fortress fund run by Mr. Novogratz has been in a serious slump for over a year. Last year, the fund lost 1.6%, compared with a gain of 5.6% for the average macro hedge fund, according to HFR. Wagers against U.S. government bonds and the Japanese yen cost the fund, among other moves.


The closure of the Fortress fund highlights a lackluster run for the hedge-fund industry. Hedge funds are down an average 3.8% in 2015, through September. That beats the 6.4% total loss by the S&P 500 in that time frame, but is worse than the 1.1% total return of the Barclays U.S. Aggregate Bond Index.

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