Blackstone Group LP (BX)

A wonderful company and they have made a lot of money for themselves. He doesn't like the model of taking a private equity firm public and trying to capitalize those performance and money management fees. There is just too much incentive now to grow assets, which is not going to be in the best interests of those underlying limited partners. Believes the right model for them is a partnership.

Likes this one because it has an Asian advantage. Partnered with a Chinese company (Chinese government owned) to purchase an Australian company. The real driver over the next 3 to 5 years is institutional investors. You will have to be patient on this one.

Usually IPOs tend to be overpriced coming into the market. Be patient, said back and wait awhile.