This content is from: Portfolio

Morning Brief: Ex-Fortress Macro Maven Novogratz Launching New Fund

The former Fortress portfolio manager, who famously folded his hedge funds in 2015, is back and betting big on bitcoin.

Michael Novogratz is back. The one-time macro maven at Fortress Investment Group is raising money for a new hedge fund, Galaxy Digital Assets Fund, to invest in cryptocurrencies, initial coin offerings, and related companies, according to Bloomberg. Novogratz is putting up $150 million of his own money and hopes to raise $350 million, mostly from family offices, wealthy individuals and fellow hedge fund managers, according to the report. Novogratz apparently hopes to be an aggressive trader.

“This is going to be the largest bubble of our lifetimes,” he told Bloomberg. “Prices are going to get way ahead of where they should be. You can make a whole lot of money on the way up, and we plan on it.” Of course, he’ll have to get the timing on the top just right. In October 2015, Fortress Investment Group shuttered its flailing Fortress Macro funds. The main fund was down 17.49 percent that year through September after dropping 1.6 percent the previous year.

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Shares of Allergan fell 1 percent, to close at $209.45, after Credit Suisse cut its price target from $286 to $266. The investment bank cited the drug company’s announcement of a new $2 billion stock repurchase program and recent negative news related to one of its drugs. Credit Suisse also lowered its earnings estimates for the next three years. As we reported yesterday, at the end of the second quarter, at least 84 hedge funds held a position in Allergan, according to Goldman, Sachs. In addition, 23 of the funds held the stock among their top-ten holdings.

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Anand Desai’s Darsana Capital Partners said it owns 3.5 million shares, or 5.07 percent, of Social Capital Hedosophia Holdings Corp., a blank-check company that went public less than two weeks ago. These blind pool companies, also called special purpose acquisition companies, are created to do some sort of deal. On its website Social Capital Hedosophia Holdings said it is a partnership between the investment firms of Social Capital and Hedosophia.

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Davidson Kempner Partners disclosed it owns 450,000 shares, or 8.57 percent, of Draper Oakwood Technology Acquisition, a blank-check company formed to do a deal. In a press release, Draper Oakwood said it intends to focus its search on businesses in the technology industry in North America.

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Michael Turner was named chief executive officer of Man FRM, the hedge fund investment specialist division of Man Group. He will continue to work closely with Keith Haydon, chief investment officer of Man FRM, and Michelle McCloskey, president of Man FRM and Man Americas. Turner will also join Man Group’s executive committee in addition to continuing to lead Man FRM’s management committee. He had served as chief operating officer of Man FRM and as a member of Man FRM’s Management Committee since 2012. Turner will be succeeded as COO of Man FRM by Rachel Waters, who has been with the firm since 2005.

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