Hedge Fund goes public

Here’s an insightful blog on the first hedge fund IPO: Fortress Group. It had a great debut yesterday. Up 100% for awhile in its first day of trading.

With US$30 billion under management, they are a massive group. With US$8 billion waiting on the sidelines to get into their funds, there’s certainly some growth left to be had. But if they use 4x leverage for many of their deals, they need to put out alot of dough to use up their equity commitments. The fun question is, what would the Fortress hedge fund managers do to a publicly-traded financial institution trading at a multiple like 40x EPS?

Short the stock, of course.

MRM