Home » Markets » Bill Ackman just made another massive bet on a new COVID-19 surge
Bill Ackman just made another massive bet on a new COVID-19 surge
Should you adjust portfolio for vaccine, election news?
Iron Macroeconomics managing director Barry Knapp and San Blas Securities President Dani Hughes on how they are adjusting their portfolios due to coronavirus vaccine news and a likely Biden administration.
Bill Ackman just placed another big bet against the credit markets as coronavirus cases surge nationwide.
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The billionaire investor said he has bought $8 million worth of insurance that will pay off if companies start defaulting on their debts like they did when the virus shut down the economy in the spring.
The bet is nearly identical to — albeit only 30 percent as big as — his now-famous hedge in late March, in which he bought $27 million of credit-default swaps that netted him a staggering profit of $2.6 billion.
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“I hope we lose money on this next hedge,” Ackman told a Financial Times conference on Tuesday. “We’re in a treacherous time generally and what’s fascinating is the same bet we put on eight months ago is available on the same terms as if there had never been a fire and on the probability that the world is going to be fine.”