By now most people probably have heard of Fortress (FIG) being the first-ever hedge fund to be IPOed in the US. And yes, it is the most successful IPO so far this year. What's the outlook of this stock?
Here's my thesis: with all these other hedge funds waiting to be in the next wave (Forbes: Who's Next After Fortress?), it is EVERYONE's interest for all institutional investors to ensure FIG's ensuing success.
Cramer said the biggest winner from FIG's IPO would be (Sears) as SHLD will now have a comp (so people'd know what a good job his buddy at Sears really is performing). This may be true - and if it is true, how about Goldman Sachs, which I see as a relative comparison to FIG? It's being traded at $213, and some people consider that as low!
Yes it is a hedge fund so it's not like buying an IBM or Ford and there'll always be risks involved. However I'd think this stock would continue to ride the bullish wave for the next 2 quarters to $45.
Further analyse & critiques are more than welcome!
$30.58 (02/11/07)
