How 'the single best trade of all time' netted one investor a $2.6 billion profit - MarketWatch - 0 views
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Bill Ackman had a hunch back in February that the coronavirus pandemic would have a greater impact on the stock market than investors were pricing in, so he essentially made a wager that the bubble would burst and started setting up a $27 million hedge. The Pershing Square hedge-fund manager then watched as the virus spread and the market tanked, turning his relatively modest bearish bet into a $2.6 billion winner.
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author and former investment banker William Cohan called Ackman’s move perhaps “the single best trade of all time.”
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Ackman explained, he got out with his tidy profit and started buying stocks. He then invested more than $3 billion in risk assets, a move that also proved prescient as the Fed started pumping money into the system and stocks rallied hard off the coronavirus bottom.