IPOX Schuster LLC

Fortress Investment Group (FIG), notably the first US hedge fund going public in February 2007, plunged to new lows today, after Citigroup – currently a 2.63% shareholder in the company - issued a ’sell’ rating. The company with a market cap of USD 29bn based on its first close, is not an IPOX Global Indexes constituent as its initial return of 67.6%  surpasses the IPOX entrance requirements. The company falls into the category of large-cap IPOs (with Fidelity Investments as one key accumulator of shares in immediate aftermarket trading) which have seen the stock soar on the first day, beyond “rational” levels. Similar companies are suffering FIG’s fate of high initial returns and strong underperformance in aftermarket trading: Examples include VM Ware (VMW), Chipotle Mexican Grill (CMG), Under Armor (UA) or Las Vegas Sands (LVS).