Making a Killing from Coronavirus

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CEOCambodiaNews
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Making a Killing from Coronavirus

Post by CEOCambodiaNews »

Hedge funds 'raking in billions' during coronavirus crisis
Managers are pocketing large sums while care workers can barely scrape by, says TUC
Rupert Neate Wealth correspondent and Jasper Jolly
Last modified on Thu 9 Apr 2020 22.17 BST

Hedge funds have been accused of raking in billions from market bets during the coronavirus crisis while care workers in high-risk environments can barely scrape by.

Frances O’Grady, general secretary of the TUC trade union body, launched a stinging attack on hedge fund managers on Thursday after it was revealed one London hedge fund had made £2.4bn betting on market moves as investors panicked over a global economic shutdown.

News of the multibillion-pound windfall came as Crispin Odey, the Brexit supporter who made millions betting against the pound in the run up to the EU referendum, said his fund had made its biggest monthly gain since the financial crisis.

O’Grady said: “It’s a sign of our broken economy that hedge fund managers are raking in billions, while care workers who are putting their lives on the line can barely scrape by. When the immediate crisis has passed, we need to rebuild a more equal economy. The super-rich must be made to pay their fair share and ordinary workers should get the respect and pay they deserve.”

Ruffer Investment, which was founded by multimillionaire financier Jonathan Ruffer, told clients it had made $2.6bn (£2.4bn) during the coronavirus pandemic-induced global stock market collapse after a series of cheap “protective investment” bets on market volatility delivered huge returns. The story was first reported by the Financial Times.

It also came to light that a US hedge fund made a 4,144% return betting on a stock market collapse in the year to the end of March. The Miami-based Universa Investments fund, which is advised by The Black Swan author Nassim Taleb, made a return of 3,612% in March alone. “I think we’ve shown Universa’s method of risk mitigation to be the most effective,” Mark Spitznagel, the fund’s president and chief investment officer, said in an investor letter seen by Bloomberg.

Odey Asset Management declined to comment on the TUC’s call for hedge fund owners to pay a “fair share” towards the fight against coronavirus. The fund made a return of 21% in March.

https://www.theguardian.com/business/20 ... rus-crisis
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truffledog
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Re: Making a Killing from Coronavirus

Post by truffledog »

The money they made surely does not come from poor people but is other rich investors losing money on the wrong side of the bet.
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Phnom Poon
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Re: Making a Killing from Coronavirus

Post by Phnom Poon »

pensions and mutual funds?

.

monstra mihi bona!
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Re: Making a Killing from Coronavirus

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Phnom Poon wrote: Fri Apr 10, 2020 1:37 pm pensions and mutual funds?
It will be from the funds that just sat there and puked into their muesli. Small and agile funds may of done well if they got their timing right. If they didn't they will in trouble. The hedge fund type don't like losses and large redemptions could be their next problem.

The pension funds are a bit cornered really, if they try to dump everything there would be no buyers for anything and their funds would be screwed. They have to ride it out. I am sure there are plenty of them who have made and will be making some good purchases now. Whether is covers the losses are quite another thing.
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Re: Making a Killing from Coronavirus

Post by truffledog »

Doc67 wrote: Mon Apr 13, 2020 5:31 pm
Phnom Poon wrote: Fri Apr 10, 2020 1:37 pm pensions and mutual funds?
It will be from the funds that just sat there and puked into their muesli. Small and agile funds may of done well if they got their timing right. If they didn't they will in trouble. The hedge fund type don't like losses and large redemptions could be their next problem.

The pension funds are a bit cornered really, if they try to dump everything there would be no buyers for anything and their funds would be screwed. They have to ride it out. I am sure there are plenty of them who have made and will be making some good purchases now. Whether is covers the losses are quite another thing.
It all comes down to good hedging and is not a question of big or small, fast or slow or depending on the category of investment. The ones that did hedge their investments (=no need to dump your investements on a shock event) are still same situation as before (cashing in the insurance that covers the losses), the ones who did not buy any "insurance" are now a lot worse off (either dumped their assets (=realized losses) or revaluation of assets (=only losses in the books, NOT realized yet). An insurance for a 20% loss of the main indexes worldwide would have cost peanuts BEFORE the crisis was even known (lets say october 2019). If you put 1M into such a bet (which is peanuts for a hedge fund) and you win the bet the windfall is HUGE because it was pretty crazy that such an event would ever incur. But the risk of losing that 1m was extremely high. Its like betting 1M on a 3 legged horse and winning the Dubai World Cup with odds standing at 2500:1

Who are the loosers? Probably everybody else therefore everybody is sharing to pay the huge win made by the few winners of the bet. As mainly the rich play the stock markets, they are probably also the ones paying for the biggest share for the winning bet if they get it wrong.
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fazur
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Re: Making a Killing from Coronavirus

Post by fazur »

mortgage foreclosures, bad debts, poor people selling everything, including cars etc

but tbh cambodia has a very high rate of over-extension of credit and like the mortgage crisis in america the govt did nothing to slow this
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Re: Making a Killing from Coronavirus

Post by Electric Earth »

I don't understand why anyone would be upset by this. Are they just now realizing that the stock market and hedge funds exist? This is no different from the game they've played all along. Are they just bitter Betty's that they've let this go on so long?
Do you think the parents of baby boomers whined so much when the boomers started changing society? And yet the whiney ones like to call young people "snowflakes." Hmm...
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Re: Making a Killing from Coronavirus

Post by Ravensnest »

good for them for winning in a game anyone can play. is it right that so many that work so hard living paycheck to paycheck? sure as hell not. I edited this because I don't feel like bitching about politics tonight. good night all.
Still hunting for opium paraphernalia.
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Re: Making a Killing from Coronavirus

Post by newkidontheblock »

It’s all about risk. Would those people getting paycheck to paycheck be willing to risk all their paychecks for the next six months (six months ago) on a bet that the markets would tank in six months?

In general people are risk adverse. Sure, many play the lottery, or ring pulls, because the cost of losing is low. But ask the average person (including me) to bet everything - food, healthcare, rent, any future hope, on a bet - that’s the realm of gamblers.

And would the average person be willing to do it day in and day out? Certainly not me.

It would be different if they caused the coronavirus to happen, then I’d be angry.

Just my thoughts.
Everyone please stay safe out there.
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michael.stewart1
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Re: Making a Killing from Coronavirus

Post by michael.stewart1 »

CEOCambodiaNews wrote: Fri Apr 10, 2020 8:25 am Hedge funds 'raking in billions' during coronavirus crisis
Managers are pocketing large sums while care workers can barely scrape by, says TUC
Rupert Neate Wealth correspondent and Jasper Jolly
Last modified on Thu 9 Apr 2020 22.17 BST

Hedge funds have been accused of raking in billions from market bets during the coronavirus crisis while care workers in high-risk environments can barely scrape by.

Frances O’Grady, general secretary of the TUC trade union body, launched a stinging attack on hedge fund managers on Thursday after it was revealed one London hedge fund had made £2.4bn betting on market moves as investors panicked over a global economic shutdown.

News of the multibillion-pound windfall came as Crispin Odey, the Brexit supporter who made millions betting against the pound in the run up to the EU referendum, said his fund had made its biggest monthly gain since the financial crisis.

O’Grady said: “It’s a sign of our broken economy that hedge fund managers are raking in billions, while care workers who are putting their lives on the line can barely scrape by. When the immediate crisis has passed, we need to rebuild a more equal economy. The super-rich must be made to pay their fair share and ordinary workers should get the respect and pay they deserve.”

Ruffer Investment, which was founded by multimillionaire financier Jonathan Ruffer, told clients it had made $2.6bn (£2.4bn) during the coronavirus pandemic-induced global stock market collapse after a series of cheap “protective investment” bets on market volatility delivered huge returns. The story was first reported by the Financial Times.

It also came to light that a US hedge fund made a 4,144% return betting on a stock market collapse in the year to the end of March. The Miami-based Universa Investments fund, which is advised by The Black Swan author Nassim Taleb, made a return of 3,612% in March alone. “I think we’ve shown Universa’s method of risk mitigation to be the most effective,” Mark Spitznagel, the fund’s president and chief investment officer, said in an investor letter seen by Bloomberg.

Odey Asset Management declined to comment on the TUC’s call for hedge fund owners to pay a “fair share” towards the fight against coronavirus. The fund made a return of 21% in March.

https://www.theguardian.com/business/20 ... rus-crisis
I guess i should be ashamed of winning the lottery or hitting the jackpot at the casino. I am sick of hearing people complaining about people raking billions off hedgefunds or on the stockmarket. People have the right to do what they want with their money and article like this are not about wealthy not paying their fairshare. This is about envy. wealthy people make smart decisions in life and take the right risks. they avoid doing things that are a waste of money and make the right friendships. Most wealthy people do not keep their cash under their mattress. They invest their earnings into businesses which allows them to expand and make more money.
My problem is not with wealthy people earning billions of dollars. it is with people who do not pay taxes at all claiming that wealthy are not paying their fair share. Wealthy people pay at least 50% of their income in taxes and they create businesses that provide people with jobs. I would rather see walmart earn a billion dollars than for the government to steal a billion dollars from tax payers. Walmart will use that billion dollars to expand its operations where as the government will use it to fund Israel's genocide against the Palestinians or on Terrorist groups such as ISIS who will destroy Syria whose only guilt is not Kowtowing to the evil US government.
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