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As that post indicated the money came from three different funds. The total sum of those funds are in the billions, so while this particular component, or investment, has tanked, It doesn't appear that it has had much effect on the overall value of those three funds because they are being propped up by better investments. You ever hear the term, diversify your portfolio? Well, this is a good example of it. Those funds would have secure investments in things like technology, government, etc. but it also has high risk elements like the money they allocated to pbc. The IVY ASSET STRATEGY fund that is listed has lost only lost 8% of its value while the pbc stock has dropped 84%. As you can see its impact is minimal and that 8% loss can be attributed to many other factors aside from PBC.
So, was this a plot to rip off Waddell and Reed? Possibly. But it's more than likely that they colluded with Haymon so that they could all benefit. Remember most investors are choosing a fund on overall performance. Most don't know what's even in the fund itself. They just know how it's supposed to perform. So, will they even care if the pbc stock lost money as long as the rest of the fund performed well? Of course not. Which is what makes it a perfect crime. This happens a lot in mining. A developer will tell his friends at a management company that he's found this great piece of land that is perfect for mining. They both know it's bull**** but they allocate money from a fund to it and the parties involved make some cash while the client's portfolio takes a small hit. Sometimes that hit isn't even noticeable because the rest of the fund performs amazingly.
I think this was either a scam , which as I said happens often, or it was a poorly executed idea. I can't fathom someone could possibly think overpaying unknown boxers to land a TV deal is a good idea. The ufc model works because they pay their guys a sustainable amount. If someone does pick up pbc you will see the purses plummet because nobody would pay that kind of money for the ratings they get.
So, was this a plot to rip off Waddell and Reed? Possibly. But it's more than likely that they colluded with Haymon so that they could all benefit. Remember most investors are choosing a fund on overall performance. Most don't know what's even in the fund itself. They just know how it's supposed to perform. So, will they even care if the pbc stock lost money as long as the rest of the fund performed well? Of course not. Which is what makes it a perfect crime. This happens a lot in mining. A developer will tell his friends at a management company that he's found this great piece of land that is perfect for mining. They both know it's bull**** but they allocate money from a fund to it and the parties involved make some cash while the client's portfolio takes a small hit. Sometimes that hit isn't even noticeable because the rest of the fund performs amazingly.
I think this was either a scam , which as I said happens often, or it was a poorly executed idea. I can't fathom someone could possibly think overpaying unknown boxers to land a TV deal is a good idea. The ufc model works because they pay their guys a sustainable amount. If someone does pick up pbc you will see the purses plummet because nobody would pay that kind of money for the ratings they get.
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