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Fortress leaves $450 million on the table
I'm pretty impressed with the idea that hedge fund fees are high because hedge funds, as the ultimate capitalist machines, naturally charge whatever the market will bear.
In which case, what was Fortress Group doing pricing its IPO at $18.50, when the market values the stock at over $30? By my back-of-the-envelope calculations, the lucky few who got in at the IPO price are now sitting on some $450 million in mark-to-market profits. Why didn't the Fortress Group want any of that money?
Posted by Felix at 11:21 EST
Comments
As they say, look at the incentives. I imagine those that constitute the "Fortress Group" did get the money.
It just went into individual accounts rather than corporate coffers.
Posted by: talboito at 12:23 EST, February 09, 2007
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