WSJ: Fortress liquidating chunk of hedge fund operation

• Fortress' (FIG +2.8%) Partners funds managed $1.7B at its peak five years ago, but AUM has reportedly slipped to just $400M of late. What's left is split between other P-E firms and direct stakes in private companies, and is set to be wound down, according to the Journal's sources.
• Fortress' hedge-fund issues aren't new news, and earlier this month the president of its hedge-fund unit - and co CIO of the Partners funds - departed.
• The company's co-founder Michael Novogratz manages Fortress' main macro hedge fund - down 15% this year - and he recently said he'll be taking more control of the hedge-fund business. As recently as July 30, he was certain the Fed would hike interest rates last week.