UAE – He promoted fear of Corona, and his wealth increased from 26 million to 2.6 billion dollars

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(MENAFN – Al-Bayan) Source: History:
March 29, 2020 In light of all the human and economic tragedies caused by the “Corona” epidemic since the outbreak in the world during the past three months, there were those who were able to take advantage of the epidemic to achieve interests and profits.

One of the most prominent examples of this was the American investor, Bill Ackman, CEO of Pershing Square Capital Management, the investment company specialized in managing hedge funds.

According to a report recently published by the American “Wall Street Journal”, Akman has benefited from the “corona” and the total collapse that it caused in the global markets, in raising the market value of his company and converting it from millions to billions.

The value of the company until two months ago did not exceed 27 million dollars, but Akman jumped to 2.6 billion dollars.

The report pointed out that all Akman simply made was that he wagered on market losses due to “Corona,” and cemented the feeling among investors of the exacerbation of these losses, which is what actually happened.

The report stated that the validity of Akman’s expectations raised the value of Pershing Square share over the current month from its inception until the end of trading last Thursday by 7.9%, while we find giant indicators of shares, their value has declined dramatically during the same period. For example, the S&P 500 index, which includes the largest 500 American companies listed on all stock exchanges by market value, lost 17% of its value since the beginning of March until now.

Akman made this massive profit for his company using the available credit protection for high-yield bonds. And while all the global markets retreated as a result of the “Corona” outbreak, this led to the decline in the value of the bonds to a very low level, which made them within the company’s reach, and bought many of them without fear of the risk of loss at all.

Akman appeared in economic programs broadcast by prominent television networks such as “CNBC, warning of chaos in the American markets, unless the White House made a sovereign decision to close the national economy for at least 30 days to prevent the further spread of” Corona, as he promoted the idea itself On social media platforms, especially Twitter, until US President Donald Trump actually took the shutdown earlier this month.

In response to accusations by commentators that he promoted fear and intentionally contributed to market losses, Akman simply replied: “I was confident that the president would do the right thing.

And as soon as the US Federal Reserve and the US Treasury announced last week a massive financial stimulus plan worth nearly $ 2 trillion to support the US economy in the face of the effects of “Corona,” he sold the bonds he had bought just a month ago taking advantage of the recovery of bond markets after investors sensed a measure of Reassurance on the background of the announcement of stimuli.

Akman exploited the profits made by his company to boost its investments in a number of prestigious companies, the most important of which are “Berkshire Hathaway, owned by the famous American billionaire Warren Buffett,” “Hilton” and “Louise” specialized in home renovation.

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