ASX All Ords dividend stock Regal Partners Ltd (ASX: RPL) is having a wild ride this week.

Shares in the All Ordinaries Index (ASX: XAO) listed alternative investment manager closed down 8.85% on Thursday at $2.37.

That followed on a gain of 2.4% on Wednesday and a gain of 5.4% on Tuesday. All of which followed a painful 14.8% decline on Monday.

Why the big fall in Regal Partners shares on Monday?

Monday's big sell-off in the ASX All Ords dividend stock followed on concerning news from eye treatment company Opthea Limited (ASX: OPT).

Opthea reported that its phase 3 COAST clinical trial had failed to meet its primary goal.

And as the Motley Fool's Bronwyn Allen noted, "The failure of the trial raises serious financial concerns for Opthea."

Indeed, Opthea stated, "In light of these matters, there remains material uncertainty as to Opthea's ability to continue as a going concern."

So, why were investors selling Regal Partners shares on the news?

Well, as a fund manager, the ASX All Ords dividend stock counts as Opthea's largest shareholder, owning some 30% of the eye treatment company. Investors fearing Opthea could go bust were selling that rumour ahead of any concrete news.

ASX All Ords dividend stock trading on an 8% yield

Over the past 12 months, Regal Partners has paid out 19 cents a share in fully franked dividends.

With the shares in the ASX All Ords dividend stock down 34% in 2025 at yesterday's closing price of $2.37, the stock now trades on a 7.59% trailing dividend yield.

Running his slide over the stock at the end of last week, before Monday's news on Opthea's trial failure hit the wires, Morgans' Damien Nguyen said he rated Regal Partners as a buy (courtesy of The Bull).

"Regal Partners is a leading alternative asset manager benefiting from rising institutional demand for investments in hedge funds, private markets and real assets," he said.

Nguyen added:

With a strong investment performance driving assets under management growth, a scalable business model, strategic acquisitions and an attractive dividend yield, Regal is well placed to generate long term shareholder value.

Commenting on the sell-off that had left the ASX All Ords dividend stock down 21% year to date as at last Friday's close, Nguyen concluded, "We view the recent sell-off as overdone considering Regal has diversified its portfolio from equities to include private credit and real assets."