11
Feb

Can Hedge Funds go public?

Escrito el 11 Febrero 2007 por Juan Toro en Financial Markets

This seems odd but it is as it sounds. On Friday, we had the first hedge fund going public in the NYSE: Fortress. The main differences relative to others is how its assets under management are distributed. They have approximately 30 bn dollars distributed as: a) 60 % is in private equity; b) 30 % on hedge funds; c) 10 % is in real state.


Demand for shares surpassed expectations and investors demanded more than 27 times the amount made available. Prices skyrocketed and closed up 70 per cent. Amazing and bizarre is the valuation priced in. Fortress had a valuation of about 37 times earnings. Others within the business are likely to follow given the reception from the market. Among then probably Citadel or D.E. Shaw. This sounds like the dot com frenzy. A large portion of profits in Fortress comes from the hedge funds side business in the form of management fees and these are highly volatile. The twist is probably in the investment mix, but still that is no reason for that high valuation. Lex from the FT put it bluntly:

Comentarios

Jos 12 Febrero 2007 - 15:55

But, what is the interest of a basically, a private equity company, to go public? Its main advantage is been leveraged, isn

Juan Toro 13 Febrero 2007 - 10:22

Hi Jos

rabaty 31 Agosto 2013 - 16:10

You should check this out…

I saw this really good post today….

rabaty 31 Agosto 2013 - 16:53

Great website…

Here are some of the sites we recommend for our visitors…

styczen 5 Enero 2014 - 14:02

Website worth visiting…

below you’ll find the link to some sites that we think you should visit…

Dejar un Comentario

*

Utilizamos cookies propias y de terceros para mejorar nuestros servicios y mostrarle contenido relacionado con sus preferencias mediante el análisis de sus hábitos de navegación. Si continua navegando, consideramos que acepta su uso. Puede cambiar la configuración u obtener más información aquí. Aceptar