The only people a hedge fund gives a shit about are certain stockholders and its own profiteers. So, find a company like Tribune who's stockholders would like a way out, but with few takers. Offer it a dirt cheap price to shut up its owners and when you buy it, saddle it with all the debt you can find to pay for it. Transferring a bunch of your own debt to the new acquisition makes the deal even sweeter. Engineer it so bankruptcy won't touch your money.
The last thing a fund wants to do is actually run a company-- that means work and risk. Nope, the only people you want to deal with are tax accountants and lawyers. No leases or needy employees, no complaining customers who actually want the stuff you really don't want to bother with selling to them...
Worked lout fine for some people with outfits like Sears, ToysRUs, A&P. and a bunch of others. Everyone made out fine except employees, customers, suppliers, and, well, the rest of the country.
The fun money is while loading up the skeleton with debt, you sell off any valuable parts and pocket the cash yourself. Look for who got the cash when Sears sold off Craftsman tools.
I don't have an answer for this chicanery, except maybe to just tax the funds out of existence. These aren't the mutual funds your grandparents' retirement money is tied up in-- they are simply tax scams for the wealthy.
American business at its finest-- let the Chinese and Koreans make the shit we need or want while we just play with Monopoly money.
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