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May 13, 2014- The Masters of the Universe who made fame and fortune in hedge funds are finding the markets too challenging these days. They seem to be slowly morphing into boring real estate moguls.
Mike Novogratz at Fortress, who has been trying to develop Pier 40 for years, has now bid $4.7 Billion for the Lower East Side rental complex called Stuyvesant Town-Peter Cooper Village. And, of course, the Seaport development by Howard Hughes Corp. is owned by hedge fund activist Bill Ackman (Mr. Ackman has a 9% equity holding, and is Chairman of the Board).
Will they succeed? Hedge fund giant Eddy Lampert bought Sears for the real estate value, and proceeded to fail as the shares fell. Mr. Novogratz is going nowhere fast on Pier 40. The Seaport is also stalled by local politics.