On the stock exchanges, there is increasing hope of an early vaccine, which is fueling the buying mood of investors. But hedge fund manager Bill Ackman doesn’t believe a quick recovery is coming – and repeats a bet from the spring.
?? Ackman places new bet against corporate bonds
?? Businesses face difficulties
?? At the beginning of the pandemic, he won 2.6 billion US dollars
While the pharmaceutical companies are reporting the first successes in studies on their vaccines against corona, hopes for normalcy are generally growing. On the stock exchanges, positive data on COVID vaccination doses are rising – the US leading index Dow Jones only recently reached its highest level. But hedge fund manager Bill Ackman does not share this optimism.
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Ackman is betting against the upswing
Pershing Square founder believes people are becoming too careless with the coronavirus. This is the opinion of the billionaire investor on the Financial Times? Dealmakers Conference, as the British newspaper FT writes. That’s why Ackman has signed a new deal to hedge his equity exposures. He is betting against corporate bonds because he believes that corporations will have difficulty paying their debts.
He placed the bet when Pfizer and BioNTech announced positive trial data on their vaccine candidate, causing markets to pick up. However, contrary to this tendency, Ackman, according to the Financial Times, classifies this report as bearish for the coming months – blame is due to the vaccine hope that has been rampant since then, which will lead to people becoming more careless with the virus, no longer wearing masks and the threat would disregard.
Bet at the beginning of the year brought in billions
With an identical bet at the beginning of the pandemic, Ackman hit the mark: The hedge fund manager rated the coronavirus and measures necessary to contain it correctly at the beginning. He assumed that the economy would shut down. For example, he bought numerous insurance policies for US $ 27 million that were tied to corporate debt of US $ 71 billion. In mid-March, around the time of the massive sell-off on the stock markets, the value of the deal had already risen significantly: Pershing Square got out and achieved 2.6 billion US dollars.
The size of the new coverage corresponds to around 30 percent of the bet made at the end of February. “We are generally at a treacherous time, and what is fascinating is that the same bet we made eight months ago is available on the same terms as if there had never been a fire, and the likelihood that the World will be all right again, “FT quoted the Pershing Square founder as saying. Finanzen.net editors