By Geoffrey Smith and Alan Murray
April 5, 2016

I stayed up late last night to watch Carolina’s heartbreak buzzer-shot defeat by Villanova, so filing only a brief update this morning.

But I’d call your attention to the impending bankruptcy of SunEdison, the latest case study in how the smartest money can turn out, in the end, to be pretty stupid. Early last year, SunEdison was flying high, attracting the biggest names in investing: Dan Loeb, Leon Cooperman, Steve Mandel, Larry Robbins, Steve Cohen, Ken Griffin, George Soros, and almost anyone else who matters. Its debt-fueled acquisition binge led CNBC’s Jim Cramer to call it the “Valeant of solar” – and he meant that as a compliment.

http://fortune.com/2016/03/31/sunedison-is-hurting-hedge-funds-as-badly-as-valeant-did/

But as went Valeant – another darling of the smart money – so went SunEdison. Its stock has now fallen 98% from its peak, and it faces some two dozen lawsuits from groups that say it owes them money, and an investigation from the SEC for overstating its cash position.

http://fortune.com/2016/04/04/sunedison-terraform-suit/

It will take a while to sort out what went wrong, but FORTUNE columnist Joshua Brown speculates it was partly the sheer complexity of the company that led masters of the universe astray. Like Valeant, SunEdison’s structure was impossible to comprehend, and mere mortals concluded the clever investors backing it must understand it better than everyone else.

Turns out they didn’t. Some humility is in order.

More news below.

 

 

Alan Murray
@alansmurray
alan.murray@fortune.com

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