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Fortress Hits Jackpot With IPO – the froth turns into bubble in private-equity and hedge-fund sector
Peter Oberois
Feb. 10, 2007
Fortress Investment Group LLC, which manages $30 billion, became the first private-equity and hedge fund manager to sell shares on U.S. markets. As one of the hottest initial public offerings in years, its shares, issued at $18.50 a piece, opened for trading at $35 amid frenzied demand and closed at $31 -- 68% higher than its IPO price.
Now it seems all the hedge funds are planning the same. The private equity funds and hedge funds have found a new bubble to create. The bubble will be bigger than that of the real estate.
The economy has not seen so many bubbles all over the places. What will happen when all these bubbles burst?
The result of Fortress IPO has created a great enthusiasm for the other hedge fund managers.
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