Is Blackstone Now Fair Value? Smart Money Thinks So

As soon as I learned about the imminent Blackstone (BX) IPO a few months ago, I was a strong supporter of the "Long Goldman Sachs (GS), Short BX" trade.

My methodology was extremely simplistic: follow the smartest money out there. If pioneers of the buy-out business were deciding to cash out, then the market must finally be ready to crash.

Why the long Goldman hedge? I just thought it was one of the easiest ways to get market neutral.

Everyone from Altman to M&A boutiques had been predicting it for over two years, but these guys are only now finally throwing in the towel.

The point of this post is not to pat myself on the back, but rather to ask a question. Following the same simple philosophy (of following smart money), is Blackstone now an excellent buy? These are the smartest guys out there. Not because they were able to bargain hard for cheap debt, but because they were able to spot talent even as far back at the 80s, with investments in guys like Larry Fink and BlackRock.

In what is continually being called the most challenging market in decades by those much more senior than me and in the know, isn't this the time to park your money with the best and the brightest?

Disclosure: none