let this be a lesson, page-3

There was nothing fundamentally wrong with the company's investment capability, it was undone purely by it's non-diverse wholesale investor base in its managed funds.

Put it this way. $1 of cash was combined with a $3 margin loan. The $4 was invested in an Everest Fund and leveraged by the fund 50:50 to give $8 in assets under management.

So when the unit prices drop by 12.5%, the investor's equity is wiped to nil. It's not hard to see how the margin calls quickly add up to cause the dramatic reduction in AUM you see today.