(Bloomberg) -- When Fortress Investment Group hired Dave Shell two years ago to start an equities business at its Logan Circle Partners, a traditional bond fund manager, Chief Executive Officer Randy Nardone called it a “natural extension” for the firm.

Last week, Nardone told analysts and investors that he decided to shutter the stocks division because it became a “distraction” that made Logan Circle, with $32 billion in assets, unprofitable. Shell, a former co-chief investment officer at Goldman Sachs Group’s money management unit, left the firm along with five colleagues.

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