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Time to Play US Anti-Growth Trade: Fortress Investment Head

With the Euro Zone crumbling under pressure of a debt crisis, Michael Novogratz, president of Fortress Investment Group , told CNBC his hedge fund is de-risking its position and moving toward the US to play the anti-growth trade.

To do so, he is shorting commodities such as zinc and copper; commodity-linked currencies; emerging-market currencies; and global equities, he said.

"When you want to get short, there are a lot of weapons that you can sell," he said.

Novogratz said his fund had long believed there was a cyclical global recovery ongoing in Europe, Latin America, US and Asia. So long as countries could "control the stresses in time before it impacts the psyche of the market, the recovery can last," he said.

But with market pressures refusing to let up, he's changing his approach:

"When the rules change, and we had a rule change yesterday[in Germany]…it gets people nervous," he said. "That starts impacting both investor psychology but also CEO psychology."

"Usually when markets crack as severely as they're cracking today, it's the start of a new regime."

Counterpoint:

  • Strategist: Europe Stocks 'Will End Year Higher'

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What He Said Last Time:

  • Novogratz' Latest Appearance on CNBC (February 26, 2010)

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CNBC Data Pages:

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CNBC Slideshow:

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CNBC's Companies in the News:

Toyota

Goldman Sachs

Target

Berkshire Hathaway

Deere

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Disclosures:

Disclosure information was not available for Novogratz or his company.

Disclaimer