Image Credit: Aviron.com
Take a break from the market turmoil to ponder the drama at a little fund run by the world’s biggest asset manager. It involves allegations of fraud and forgery, not to mention a fund manager’s daughter landing a part in a movie the fund financed.
We’re talking about the BlackRock Multi-Sector Income Trust. In 2017, the fund, which at that time had $750 million in net assets, lent a tenth of that to a small, privately held movie company, Aviron Capital LLC. It was an unusually aggressive bet. By late 2019, the fund said the loan wasn’t worth anything, for a nearly $75 million loss. In December, it filed a lawsuit against Aviron and its owner, William Sadleir.
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This article was originally published on The Wall Street Journal.
Further reading
Benjamin Graham, The Intelligent Investor
Jason Zweig, The Devil’s Financial Dictionary
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Little Book of Safe Money