Bath on Blackstone
So Blackstone went public today (BX). I was interested in buying in, due to my general enthusiasm for private equity and my opinion that major PE firms will survive & prosper in the post-cheap-debt era. Research and some compelling arguments convinced me that a first day purchase would find me in a bath well under water.
Sure enough, shit stank. 13% sounds like a good gain, until you realize that the only people who saw that money were institutional investors (BX listed at $31, closed at $35.04).
Sure enough, this relatively poor performance has brought the half-wits out of the woodwork. Sample: “Exceptionally good managers know the right time to cash in on their investment, and they have, big time.” Apparently this dipshit didn’t even read the numerous summations of BX’s IPO Prospectus - which clearly state that all of the firms managers are comfortably clapped in golden handcuffs, with the exception of Pete Peterson who’s taking his money and going home.
I’m thinking about getting in on a little hot Blackstone action in the coming month, preferably before the Senate rejects the proposed restructuring of tax law designed to ping IPO-ing hedge funds.
Marc Andreessen weighs in against a PE public market investment here. Compelling.
