The money Wadell & Reed, in this case IVY funds has invested in PBC and other investments is not Wadell's money... it is investor's money that Wadell & Reed is managing.
So...for example, 100 million in investments raised from investors, W&R let's say makes 1% on. Their earnings are only 1 mil. The company may only be worth 2 or 3... etc.
Ie the money you have in your bank.... is not your bank's money.... they only make money on loaning it out etc.
Hedge Funds and Mutual funds make money on management fees and performance fees on the money that they manage.
So W&R LOST not their own money per say, but their investor's money that they were managing for them.
Investors are claiming it was a fraudulent and unsuitable investment.
Those reports are ALL public filings and all legit.
(yes, I work in finance.)
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