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No. 3 - Bizarro Wall Street

Welcome to Bizarro Wall Street, Where Private Equity Goes Public And Hedge Funds Aren't Hedged

Blackstone Group, the buyout fund that persuades companies to go private, reportedly has plans to go public. Blackstone is looking past the obvious hypocrisy, as the firm stands to be valued at more than $40 billion, making it bigger than Lehman Brothers (LEH). Meanwhile, a study first publicized by the web site Financial News online, states hedge funds aren't doing that good of a job of hedging. Between 1986 and 2004, they only outdistanced mutual funds by 1%. Where should your money be on this bizarro Wall Street?

Jeff Macke says private equity is all about getting rich. And Blackstone founder Steve Schwarzman who owns 40% of the company will be worth about $15 billion after the company goes public.

Tim Strazzini says Schwarzman is selling the top. Blackstone has invented the iPod of private equity and Scharzman wants to monetize it. Tim says he would not buy the stock.

Guy Adami agrees and says it’s a lot like the Fortress Investment Group (FIG) IPO a few weeks back. Guy adds he would not have bought that stock either.

Dylan Ratigan says the bottom line is that our guys are selling.

Questions? Comments? fastmoney@cnbc.com

Trader disclosure:
On MAR 19, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Bolling Owns (CVX), Gold, Silver, Soybeans, is Short Corn. Strazzini owns (CHK), (EWG), (STM) GE is the parent company of CNBC.