Tuesday, 23 August 2016
Last updated 3 min ago
May 11 2012 | 12:27pm ET
Fortress Investment Group is throwing in the towel on its four-year-old commodities hedge fund following a rough stretch.
The New York-based alternative investments giant said it would close the Fortress Commodities Fund later this month. The fund has lost 12.57% this year, including 4.23% last month.
The Commodities Fund has already seen its assets dwindle by more than half. It launched with $1.1 billion in 2008, but had just $500 million in assets at the end of March. As recently as last year, the fund managed $800 million.
Fortress disclosed its plans in a Securities and Exchange Commission filing this week.
"This will be the final month in which monthly and year-to-date performance data for the Fortress Commodities Fund will be reported on Form 8-K," Fortress wrote in the filing. "On or about May 23, the Fortress Commodities Fund will cease its ongoing operations and will commence procedures to distribute capital to its investors."
The filing was pretty grim reading for other Fortress investors, as well. The firm's Macro Fund lost 2.44% in April and its Macro Asia Fund 2.18%. Both funds, however, remain up on the year, with the former returning 3.6% and the latter 3.5%.