#ForexChief #SP500 #DowJones #CDS #Ackman #stock #secretOfSuccess #Covaxx⠀
💰 How to make money on inflation and pandemics⠀
🔥He gets billions when others calculate losses: at the beginning of pandemic and lockdowns of 2020, William Ackman's Pershing Square Capital fund earned $2.6 billion (+ 9630%). In 2021, he made an equally successful «bet on inflation»: invested $170 mln in options on US Treasury bonds brought in $1 billion. The secret of success: a clear forecast and a competent bluff.
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Forbes classifies him as an investor, but his colleagues consider Ackman a speculator and blackmailer. Instead of books on trading, William studied psychology − now other people's mistakes bring him profit. As of 08/01/21, Ackman's fortune was estimated at $2.9 billion, and by the end of year, the growth of his hedge fund outstripped the Dow Jones by 40%, and the S&P500 by 30%.
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Back in February 2020, when no one expected any defaults and lockdowns, he acquired
CDS (Credit Default Swap) on the corporate bond index for $71 billion (10 times more than all Pershing Square assets). As the pandemic spread, the risk increased dramatically,
CDS premiums and the cost of swaps rose exponentially, and on March 15, William told shareholders that the net income from the swap deal was $2.75 billion.
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When all stock markets were at their bottom, Ackman invested virtually all of the $2.6 billion he earned from
CDS in stock monsters. These include Berkshire Hathaway, Hilton Worldwide, Howard Hughes Corporation, Lowe's, Starbucks and Restaurant Brands. Interestingly, Ackman did not invest in principle in the production of vaccines but invested in Covaxx, which makes kits for testing antibodies to coronavirus. It is logical: the cure will not be available soon, but the tests are needed now.
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Following a sharp recovery in markets, these equity positions earned the fund an additional $1 billion. Draw your own conclusions!
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Profits to y’all!