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?

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1 Response to Fortress leaves $450 million on the table

  1. talboito says:

    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.

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