In this paper we will discuss about the
Hedge Fund IPO. Hedge fund is basically a private investment fund which opens itself only to a group of qualified investors, mainly individuals with at least 1 million dollars. In 2007, for the first time, hedge fund went public.
In 2007, hedge funds went public for the first time. Fortress Investment Group (FIG) started its IPO which was the first hedge find IPO. The price of FIG's share was 18.50 dollars.
A hedge fund is basically a fund for private investment. Only few qualified investors are eligible for investing money into the hedge fund. The investors have to pay a performance fee if they go for hedge fund. It has been dominating the US trade market for several years.
- FIG IPO's performance on the opening day was reasonably good. The shares were oversubscribed several times and at the end of that day the price went up to 31 dollars.
- The managers of Fortress Investment Group retained a large stake in the company, for which, FIG's shares performed well in the stock market.
- Hedge Fund in Europe was able to avoid some rules that had been abstaining the sale of IPO issues to the less affluent persons.
- Hedge funds usually targets investors with a minimum of 1 million capital. It aims to make money irrespective of the ups and downs in the financial market.
- In 2006, Marshall Wace collected 1.5 billion euros through the biggest hedge fund IPO. The company permitted individual investors to enter into the stock market which normally was limited to the millionaires.