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Hedge Funds Cool Off

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Hedge funds are looking to cash in before they cool off and investor enthusiasm curbs (see Och Ziff IPO, even though it insists otherwise). The iron is hot for the time being, but some hedge funds are pre-empting the next industry ice age (or rise of the machines) by trying to corner the solid dihydrogen monoxide market.
Take Bennett Goodman's GSO Capital, which announced that it's acquiring Reddy Ice Holdings, the largest domestic ice packager, for $1.1bn. GSO is offering a 10% premium on Reddy's share price, despite the fact that the company has been flipped twice in the past four years, and recently cut its profit forecast, due to (you guessed it) an unseasonably cold April. Banking on wild weather fluctuations (extreme heat this time) due to such unseasonable conditions and strong cash flows, GSO is confident that the acquisition will pan out...and by panning out we mean the GSO thinks they can at the very least flip the company in a couple years. Either that or GSO knows something we don't, and is planning on stopping an imminent invasion of Aliens / Predators / Decepticons / T-1000s / supervillians with Fortress of Solitude crystals / X-files spaceships.
Speaking of which, in the book of bad movie plot devices, is there nothing more cliche these days than taking a "but it was frozen in ice all along," angle? After seeing another movie hinge on frozen beings from another world last night (Transformers - verdict - not nearly as good, or fun, as Die Hard, and the whole thing gets so rushed and thrown away in the last half hour... and there are no classic Michael Bay 'Nick Cage with signal flares on 'The Rock'' money shots... and the giant robots form a Three Stooges-esque slapstick troupe for a 15-minute scene (I'm serious)... and for some reaon a Camaro is larger than a two story house when upright) I'm wondering if Hollywood really can screw up what started out as a guaranteed record-breaking summer.
Also, hedge funds, with moves like the Reddy acquisition, are acting more and more like PE funds (and the PE space is already crowded enough). Discuss.
Around the region: Hedge fund to buy Dallas ice maker [Houston Chronicle via Dealbook]