Thursday, April 09, 2020

Pandemic? Alright for some (4)

Frances O’Grady, general secretary of the TUC , 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. 

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

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 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.

Crispin Odey said his fund had made its biggest monthly gain since the financial crisis.  The fund made a return of 21% in March.

A US hedge fund, the Miami-based Universa Investments, made a 4,144% return betting on a stock market collapse in the year to the end of March. It made a return of 3,612% in March alone.

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