This hedge fund took the bait with all the J2AK spiel and saw an opportunity to make some money (that's what hedge funds do). There was a lot of cash around at the time: Premier League status, lots of saleable assets player-wise, and then parachute payments. We can all debate where the money has or has not ended up.
What can't be argued is the state we find ourselves in now—basically the polar opposite of when the hedge fund took the reins. This is the reason I'm filled with hope for the future. The new guys coming in know the score. They come in with eyes wide open: no Premier League, no parachute payments, not many saleable assets player-wise. But they are willing to take us on.
Onward and upward!