How does one make sense of the fact that just weeks after
the biggest-ever hedge fund blowup, these investment vehicles
became the darlings of Wall Street? First Morgan Stanley inked
three big deals - with FrontPoint Partners, Avenue Capital and
Lansdowne Partners. That was quickly followed by the
announcement of an upcoming Fortress Group IPO.
Stock market giddiness is no doubt a factor in all these, as
the secular decline in hedge fund returns has apparently been
ignored by the buyers. As for the sellers, hedge fund partners
are looking for ways to cash in - or at...