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?