International Herald Tribune- First came the private equity and hedge fund public offering frenzy, then the bust. Now comes IPOs, Act II.<\/p>\n
Och-Ziff, a $30.1 billion hedge fund, was expected to start trading on Wednesday after being priced Tuesday at $32, midway in the range its bankers set.<\/p>\n
It is the first pure hedge fund to offer shares on a U.S. public market, and it comes at a time of remarkable turbulence and economic uncertainty (GLG, a London hedge fund, recently went public on NYSE Euronext through a special-purpose acquisition vehicle).<\/p>\n
That Och-Ziff pushed forward with its offering at a time most others have pulled back underscores the lasting power of these businesses and underlines some of the differences between hedge funds and private equity firms.<\/p>\n
Blackstone Group and the Fortress Investment Group – two alternative asset management firms that went public this year and have private equity, real estate and hedge fund operations – have suffered large losses along with financial stocks. Blackstone has fallen 35 percent since its debut, closing Tuesday at $22.80. Fortress has declined 44 percent, closing at $17.50.<\/p>\n