of the day comes from billionaire investor Wilbur Ross:
We syndicated a loan for one of our companies recently, and I noticed that
one of the hedge funds had bought it, bought a small piece, a $10m piece,
but never came to any of the due diligence meetings. So I called the fellow
who runs the hedge fund, because I know him, and said: thank you for participating,
but I was surprised nobody came for diligence. He said: for a $10m loan, it
is not worth sending someone to a meeting.
The really shocking thing here is not that the hedge fund in question thinks
so little about a $10 million investment. Rather, it’s that they passed up the
opportunity to get some inside information on Ross’s company!