Michelle Celarier, editor, Absolute Return
From the billions of dollars hedge funds made
shorting sub-prime to the billions lost in the quant meltdown,
2007 was a year of extremes for the US hedge fund industry.
The year started on an ebullient note, and nowhere was this
more evident than in the overwhelming success of the first
initial public offering of an alternative asset management
company, Fortress Investment Group, which had about $30 billion
in both private equity and hedge fund assets at the time.
When Fortress went public on 9 February, its stock was
valued far higher than any other publicly traded asset
management company had ever been, given the hedge fund mystique
and the unique nature of the deal. The offering was many times
oversubscribed, and after being listed at $18.50, the stock
burst out of the gate at $35, somewhat reminiscent of the IPO
performance of internet stocks...