BizJournals Portfolio
Home >   Business Views, Opinions and Blogs >   Business Blogs >   Market Movers >  

Anecdote Inflation

Market Movers

by Yves Smith and Felix Salmon
Main
Arrogance + Insecurity = Success, Steve Jobs Edition   Steve Schwarzman Basks in the Limelight

Recent Blog Posts

Links

Jun 19 2007 12:00am EDT

Anecdote Inflation

Wilbur Ross, talking to the FT in April:

Anecdotally 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 $10 million 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. Makes you wonder how many $10m pieces are in that portfolio without any due diligence.

Wilbur Ross, talking to Reuters in June:

Ross gave an anecdote of one hedge fund who took a $20 million stake in one of his portfolio companies. “I called him to thank him, but I told him that nobody from his fund came to due diligence. He said ‘I know that.’ I was surprised, and he said ‘we’re only going to put $20 million in we didn’t think it was worth sending anyone.’ So it makes me wonder, how many of these fellows are buying the things without due diligence.”

. □

blog comments powered by Disqus
Real Business, Real Results
Out of the 'Family'

Did anyone at Microsoft ever watch the (gasp!) offensively funny show Family Guy?

Cruz Missile Lands

Ex-Morgan Stanley exec Zoe Cruz is now heading her own hedge fund. Are Wall Street's leaders done?

Scandal Chic

Martha, Bernie and Skilling know that what you wear for court can go a long way in public perception.

spotlight on

Health Care

Bad to the Bone No More

Companies such as General Mills say they're stepping up efforts to change employees' bad behavior and promote healthier lifestyles. Read More