Best global macro fund: Drawbridge Global Macro (Fortress Investment Group)
The Drawbridge Global Macro fund is known for making demands on its investors. The fund has a three-year lock-up, for example. And last year, the managers created a separate class for investors who accepted a side-pocket they were suggesting. But investors are prepared to accept these onerous conditions. While many macro funds have been struggling to produce returns, Drawbridge Global Macro last year returned about 17%. Since its inception in June 2002, it has returned 14.2% to investors.
The star behind Drawbridge Macro, one of several Drawbridge funds, is Michael Novogratz. Once a US Army helicopter pilot, Novogratz, at 42, is the youngest of the Fortress partners. Before starting Drawbridge Macro, he was a trader for Goldman Sachs, running its Latin American business before moving to Asia. At Goldman, Novogratz worked with Peter Briger, who runs the Drawbridge Special Opportunities fund. Their ability to produce returns has attracted assets to the Drawbridge funds, which reached $4.4 billion as of September last year. Fortress Investment Group has about $10 billion in hedge funds altogether.