WEST PALM BEACH, FL (HEDGECO.NET) – Hedge fund companies may find it more difficult buying shares of Google IPO, according to news reports. Hedge funds may not be allowed to participate in thebidding process for IPO shares of Google, through the retail portion. However, some funds may buy shares through the institutional channel of Credit Suisse Group’s Credit Suisse First Boston andMorgan Stanley.
Hedge funds without affiliations with underwriting firms may find it difficult to participate in the IPO process, according to the reports. Hedge fund firms without client relationships with underwriting firms of Morgan Stanley or Credit Suisse won’t be allocated shares. Nonetheless, it is a known fact that many large hedge fund companies have affiliations with big underwriters.
There is also the issue that co-managers won�t be handling the institutional business of the IPO deal. Hedge fund managers may bid for shares according to the report, but they may do so as individuals, which somehow limit their abilities to invest their client�s money.
Representatives of the underwriting companies as well as Google authorities declined to make comments. Hedge funds have been accused of causing much of the volatility and price swings common in new IPO trading; this suspicion is the result of hedge fund trading habits of moving in and out of the markets at will. Google may announce the price of its auction IPO next week, according to individuals knowledgeable with the deal. The Google IPO will be making its debut on the NASDAQ stock exchange, trading with the symbol, GOOG.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
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