“For a $10m Loan, it’s not Worth Sending Someone to a Meeting”


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!

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