What to make of Och-Ziff

We all know that hedge funds returns in November were awful. Just down right bad, and returns may stay depressed for a while. So on the surface, it would appear that Och-Ziff picked the worst time to go public. Financial News Online notes that since its IPO was priced at $32 last month, it has steadily sank in the aftermarket. It's down about 34 percent. So the classic question emerges: is this a buying opportunity? The bulls will note that despite low returns recently, hedge funds are poised to carve out an ever greater allocation from big institutions. But winning a decent share of that allocation will depend on performance. Och-Ziff, or any other public traded hedge fund company, will likely rise or fall based on the performance or perceived performance of their own funds. Which is why I expect more hedge funds to go public even now.  

For more:
- here's the Financial News Online article

Related articles:
- Jury still out on Och-Ziff IPO
- Hedge funds still bent on going public?