Hedge Fund Billionaire Invests 10% Net Worth into Bitcoin and Ether

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21 April 2017

A former principal at Fortress Investment Group claims to have invested 10% of his overall net worth into cryptocurrencies.

Speaking at a Harvard Business School forum on Wednesday, Michael Novogratz discussed his outlook on blockchain and digital currencies, according to a report by CNN Money.

Participating on panel that included representatives from Microsoft and CME Group, Novogratz said he has invested in both bitcoin and ether, the cryptocurrency that powers the ethereum blockchain, calling the moves the “best investment” of his life, the report said.

CNN further detailed how Novogratz said he invested in ether when it was trading for just $1, having been impressed by ethereum founder Vitalik Buterin at a dinner party held at his home.

According to CoinDesk’s Ether Price Index, the cryptocurrency was trading at around $48 at the time of publication.

While such outsized statements may seem unusual from a financial industry veteran, Fortress Investment Group was actually one of the earliest firms to show an interest in the sector, investing into a $150m hedge fund called Pantera Capital in 2014.

Novogratz was notably involved in the early formation of the group, according to reports at the time, serving as co-chief investment officer of Pantera Bitcoin Partners, the fund managed by Pantera Capital.

He would later step down from his position as CIO of the Fortress Macro Fund, which represented roughly 3% of the firm’s total assets under management, at the time it was closed.

Correction: An earlier version of this article mistakenly referred to Novogratz as the founder of Fortress. This has been revised.

Novogratz image via YouTube