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No. 1 - Still The Smartest Guy In The Room?

If you looked at the headlines recently, you might think that private equity and hedge fund managers were the dumbest guys in the room. Well, think again. Shares of Blackstone (BX) (Steve Schwarzman's private equity firm gone public) rose nearly 3% Monday after BX reported a 3-fold increase in Q2 profits. Investors are betting with private equity, but why?

CNBC’s Matt Nesto joins the conversation after being on the conference call. Here are excerpts from what was said.



Matt explains that 3 of Blackstone’s 4 main businesses will be reporting 300% revenue growth. On a related note, he adds that Blackstone’s biggest frustration this year has been getting outbid on some deals.

Eric Bolling tells the panel, he thinks some of those deals were shaky credit deals.

Pete Najarian feels the Blackstone IPO was overpriced. But down at this level, Pete is starting to like this stock.

Jeff Macke doesn’t understand why BX is a public company.

Dylan Ratigan explains that Fortress Investment Group (FIG), the first hedge fund to trade publicly in the US, jumped 8% before earnings Tuesday.

Guy Adami tells the panel he doesn’t like Fortress stock.

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Trader disclosure: On Aug 13 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money
Macke Owns (EMC); Najarian Owns (EMC), (GS); Bolling Owns Japanese Yen Futures; Bolling Owns Gold Futures