Fortress has become the first publicly quoted hedge fund in the US after it listed on the New York Stock Exchange.
The private equity and hedge fund began offering shares at $18.50 each. At the close on the first day of trading, they stood at $31.
Analysts believe Fortress’s decision to float more than 34,000 shares may prompt other hedge funds to follow suit.
Along with Deutsche Bank, Fortress helped finance Macklowe’s $7bn purchase of eight Manhattan office buildings from Blackstone’s Equity Office portfolio.
Fortress, which manages more than $9bn of hedge funds, began as a private-equity firm in 1998. The company has doubled its assets, which now stand at around $30bn, and has funds in both commercial and residential real estate.
UK hedge fund manager Polar Capital listed in February on the Alternative Investment Market of the London Stock Exchange. Its shares rose by 25% on the first day of trading.
The listing of hedge funds raises the question whether now is a good time to buy the shares because the industry is at the top of the cycle.
Several central banks have also questioned the role of hedge funds in the financial markets. Because of their high levels of debt, they add a lot of volatility to the markets.
