Billionaire Bill Ackman Made 100-Fold Return On Coronavirus Hedge That Yielded $2.6 Billion

As of last Wednesday, Pershing Square was down just 6.5%, versus 30% for the S&P 500, and it protected his investors against 50%-plus declines in some of his holdings. The move protected most all of the 58% gain Pershing Square reported to its investors in 2019.and outline just how bad the virus could be for the economy and how hard companies might get hit, Ackman took off the hedges.

“We continue to expect that markets will remain volatile, and therefore, new opportunities may present themselves that are superior to investments we currently own,” Ackman told his investors in a Tuesday morning letter. “This may lead us to sell certain of our existing holdings including investments we recently purchased. We may also choose to reestablish similar or different forms of hedges or raise more cash based on developments with the coronavirus and other market factors.

As the virus has worked its way west, the only method that has proven successful to stop the rise in infections, sickness, and death is a strong-form lockdown, first implemented in Wuhan, on Monday night in the U.K., and Tuesday in India.

Because states cannot close their borders, a rolling program of state-led lockdowns is highly suboptimal as states in lockdown can be re-infected by visitors, and their exiting residents can infect other states when they depart in advance of the lockdown. When the Chinese government announced the lockdown of Wuhan, millions of Wuhan residents left in advance of the curfew, spreading the virus throughout China and the rest of the world. As each U.S.

A 30-day, countrywide lockdown will have the additional benefit of helping the healthcare system and its supply chain catch up to the growing case load in order to meet the immediate needs of our hospitals and their patients. State governors like NY Governor Andrew Cuomo, with the support of the federal government, are heroically working to address this problem on behalf of our citizens. As New Yorkers, we are incredibly grateful for Governor Cuomo’s leadership which will save many lives.

The important word here is 'hedge'! Let's see the losses in his underlying portfolio and net them off before talking about 'making' money.

Cant afford a brush

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