Move by Hildene Capital Management comes as legal and financial pressures increase on multibillion-dollar Sackler family https://www.wsj.com/articles/hedge-...ker-of-oxycontin-11551985100?mod=hp_lead_pos7
Either they lost 4.5B or what they gave back to Sackler family as Hildene Capital Management funds gone down, they trade "distressed secondary positions in collateralized debt obligations". I wonder how much of it end up worthless? https://predictiveops.com/advisers/160415 http://www.hildenecap.com/
You are misreading the tea leaves. The web sites for the investment managers are regulated, so they can't put the actual current AUM (or returns or much information at all). Sackler maybe had a few hundred there at most. It's mostly a publicity move by the fund (look how ethical we are, we don't manage money of these people!). Some does go bust, but they make a killing on the stuff that recovers - it's highly asymmetrical, like any distressed product. The business model is simple - buy up distressed structured debt that has good value, split the pools, participate in restructurings (principal reductions, rollovers etc). It's a very good business. It was them who bought up a bunch of RMBS pools after GFC and offered home owners 50% mortgage reductions, for example.