bukkake party of IPOs

Man For Sale (So To Speak)

themanshow.jpgFinally, something quasi-exciting today (other than the planning of our upcoming “Whose Boobs?” contest, which we’ll tell you all about in good time): the Man Group plans to list a hedge fund on the NYSE! Man, one of the largest hedge funds in the world, will be selling a closed-end fund that employs hedge fund strategies. Shares of the Man Dual Absolute Return Fund will be pawned for $20 each, with a minimum order of 100 shares (to maintain
the farce of hedge fund availability only to “accredited investors”).
The fund’s assets will be invested by two managers: About 80% will be under the watch of quantitative manager Tykhe Capital, using a long/short equity strategy. The rest will by managed by Man’s AHL Core program, a mangaged-futures strategy.
Everyone is excited to point out that this move is indicative of a “broader trend of hedge-fund managers boosting their assets through exchange-traded funds that can be bought by both institutional and retail investors” (or something to that effect). We’re just psyched to be getting some mileage out of what we’d previously thought was our retired “bukkake party of IPOs” tag.
Man Group to List Hedge Fund on NYSE [Forbes]

Fortress Aims to Please, Does Not Disappoint

We roused your interest yesterday about the historic!!! IPO of Fortress Investments and it was not for naught: the U.S.’s first hedge fund to go public lifted off later in the day at the high end price of $18.50 and proceeded to rocket out of the gates with a debut on the market at $35 a share, almost twice that of its offering price (obviously). The Torchbearers now have a market value of $14 billion, and are positioned to “maintain and expand” in their role as the leading global alternative asset management firm.
But while everyone else seems to be as excited as us about the whole deal, (“The road show was wall-to-wall, standing-room-only at every site!”), some people are turned off by the plebian, “now everyone can invest” nature of the situation. And there are definitely hedgie traditionalists who, used to getting off on the mores of secrecy that their industry is known for, are displeased with what could mean an exhibitionist turn for the landscape.
To the skeptics, we say, how can you not be excited at the prospect of being able to have conversations like this on company time:
oh baby its bess (12:17:03 PM): yesterday i referred to this company, Fortress, and its IPO (initial public offering, means a private company goes public and ppl can buy shares in it) as the “bukkake party of IPOs” (buy shares on my face! buy shares on my face!), b/c it’s a really big one, etc, etc, etc. today it was huge (debuted on the market at twice the price it was estimated at)…so i need a headline like Fortress Does Not (Disappoint but something that alludes to bukkake or the like)
klwinick126 (12:17:17 PM): i am so pleased that you think i am the sort of person who doesn’t know what an IPO is, but does know what “bukkake” means
oh baby its bess (12:17:25 PM): well…you know…I know your strengths and weaknesses, so to speak
klwinick126 (12:17:33 PM): hmm…I don’t know…
klwinick126 (12:17:47 PM): erection metaphors are hard
A: It’s impossible.
(P.S. Yes, I am a one-trick pony.)
Fortress Investment’s Shares Almost Double After IPO [Bloomberg]
Hedge fund Fortress soars in trading debut [AP via MSNBC]
Fortress I.P.O. Opens Sharply Higher [DealBook]
Firm’s public stock sale pulls hedge funds out of shadows [LAT]
Sturdy Showing for Fortress IPO [thestreet.com]
Earlier: NB: I’ve Trademarked The Term At The Bottom

NB: I’ve Trademarked The Term At The Bottom

Fortress’s historic!!! IPO is set to be priced today and it’s all financiers, financial journos and the barista at our neighborhood Starbucks can do not to give themselves strokes over the whole deal. Carney himself passed out earlier this morning in excitement, though, quite conceivably, that could have been due to other things which we can’t get into here (ohbabyitsbess after 1:15 for more details on this and other things not suitable for printing (read: pics from last Saturday’s annual CNBC Hottie Slumber Party)). The Torchbearers will sell up to 34.3 million shares at $16.50 to $18.50 each, with the firm’s top execs controlling a remaining 78% of the company after the offering. Fortress may have a market value of approximately $7 billion, post sale. Here’s a quick rundown of the chatter surrounding this historic!!! forthcoming event:
At The Australian, sources are calling demand for shares “insane and ridiculous…far surpassing the expectations of the deal’s book-runners and Fortress management.”
Predictably, Bloomberg is blasé about the whole thing, quoting total buzz-kill Jay Ritter, who’d “Be surprised if there was a big first-day price movement….It’s kind of similar to closed-end funds and REITs that you’re paying $1 to buy 95 cents worth of assets.”
TheStreet.com makes food-related deductions, noting that “Fortress [has] garnered so much interest that an investor luncheon it scheduled to hold on Wednesday was completely sold out.”
Perhaps most frightening is MarketWatch’s David Weidner’s two cents:

Forget for a moment the uneven terms, this is an offering that is likely to shape the future of hedge funds in the U.S. capital markets. Wall Street’s biggest banks may soon find if they need to be doing more schmoozing with the Steven Cohens of the world — not just to land prime brokerage business — but public offerings that generate the industry’s biggest fees.

SBC.bmpIncreased face time with this guy? The Fortress deal may very well turn out to be the bukkake party of IPOs (Buy shares on my face! Buy shares on my face!), but we’re going to have to pass.

Fortress Draws High Investor Demand for Initial Public Offering
[Bloomberg]
Last-minute scramble as hedge fund lists [The Australian]
Fortress at the Ramparts [TheStreet.com]
Hedge fund company seeks the ‘dumb’ money [MarketWatch]