Michael Novogratz is a principal and member of the board of directors of Fortress Investment Group LLC (NYSE:FIG) and Co-Chief Investment Officer of the Fortress Macro Fund and the Drawbridge Global Macro Fund. Michael Novogratz joined Fortress in 2002 after spending 11 years at Goldman Sachs Group Inc (NYSE:GS), where he was elected partner in 1998. Michael Novogratz serves as a member of the New York Federal Reserve’s Investment Advisory Committee on Financial Markets. Michael Novogratz founded and serves as Chairman of the Board for Beat the Streets, a nonprofit organization which builds wrestling programs in New York City Public Schools and is also the Honorary Chairman of USA Wrestling Foundation. Michael Novogratz is Chairman of The Friends of the Hudson River Park. He also serves on the Board of the Acumen Fund, NYU Langone Medical Center, Princeton Varsity Club, and the Jazz Foundation of America. Michael Novogratz received an AB from Princeton University in Economics, and served as a helicopter pilot in the US Army.
We are covering the 19th IRA Sohn Investment Conference produced in partnership with Bloomberg LINK. Make sure you sign up for our free newsletter to ensure you do not miss any updates! Michael Novogratz spoke at the IRA Sohn Investment Conference, also see Fortress invested $20 million in Bitcoin. Below are notes from his presentation. Note all times are EST (and from May 5th 2014)
Highlights from Michael Novogratz’s presentation
Michael Novogratz is the first speaker at this year’s Ira Sohn Conference (excluding the speakers from this morning who spoke at the Next Wave event). Below are notes (in an informal manner) from his talk at the Ira Sohn Conference. Michael Novogratz says its been a rough four months for macro traders. As ValueWalk has noted in prior articles. Many of the top global macro funds are down this year.
12:10 PM EST: Novogratz says there is an “eerie” calm in markets. Low volatility. Makes challenging environment for trend traders. In addition, there are not a lot of ‘great themes’ to play right now. Now he switches to Brazil, seemingly the focus of the idea to be presented.
12:15 Michael notes that Eike Batista presented at a previous conference only a short while ago. Eike was close to becoming the richest man in the world. “It was a Brazil love fest”, he said. Right now we have slow growth across the globe, with an ever slowing China, and a weak Europe. However, amid selling comes opportunity. Michael believes that “it’s so bad that it’s good right now.” He notes that many Brazilians aren’t happy that the government is spending on the World Cup and not on vital services for its citizens. Michael is even wearing a Brazilian flag right now!
12:20 Novogratz says ‘pessimism’ about the country is at an ‘all-time high’ and the feeling is shared by both foreigners and locals. Additionally, more politics could decide the future. Michael believes that if Dilma wins the elections, the country is in for a “long long dark period.” However, Michael believes that that the odds are Dilma won’t be re-elected. If so, this could be a catalyst for a big move in Brazilian assets to the upside.