Some people just have the gift of seeing an opportunity in things and making a bet that makes them thousands, if not millions, and sometimes billions. This of course helps if the bettor is already in the financial industry and knows what signs to look for. However, this does not guarantee the success of the bet in question. George Soros has the most famous of these stories (which we’ll cover below) dating from 1992, when he basically broke the Bank of England. Recently, donor Bill Ackman won big last month, with a bet that the coronavirus would crash the stock market. He turned $ 27 million into $ 2.6 billion with this bet. This led us to think of other big bets which seemed controversial at the time they were made, but which paid big for the man (they are all men here, sorry ladies!) Who tried this chance. So, without further ado, let’s dive in and look at 10 of the best and biggest bets in the financial sector that paid well for those who tried their luck.
Bill Ackman is a billionaire hedge fund manager. He felt that the collapse of the market due to all the stoppages, deletions and layoffs of coronavirus could make him big. He made defensive cover bets in March 2020 and transformed his position from $ 27 million to a gain of $ 2.6 billion. He believed that the debt bubble would burst and that investors would abandon the riskier securities. He was right.
In 2003, oil trader Andrew Hall bought inexpensive long-term oil futures that would be cashed out if the price hit $ 100 at some point in the next five years. It paid off well for him because in 2008, at the end of his bet, oil reached $ 100 and Hall collected $ 100 million for his employer, Phibro, and also got a giant chunk of that $ 100 million. for himself.
Twenty years ago, the British hedge fund manager Neil Woodford invested in tobacco stocks, the price of which fell before the first Internet bubble burst. In 2014, his bet paid off with annual returns of more than 20% on his British American Tobacco fund.
During the previous financial crisis of 2009, hedge fund billionaire David Tepper made a very wise bet. He has made large investments in Bank of America and other troubled businesses. He basically bought a huge amount of troubled bank assets. That ended up bringing his hedge fund down to $ 7 billion.
Simon Cawkwell is a British retractor who predicted the bankruptcy of the Northern Rock bank in 2007. He made a profit of $ 1.2 million by short selling shares of the doomed bank.
Few people won in the 2007-2008 housing crisis. However, hedge fund investor Kyle Bass did. He earned $ 4 billion by buying credit default accounts after the housing market collapsed during the last recession in the United States.
In 1990, investor Louis Bacon invested in oil after betting that the first war in Iraq would have an impact on the cost of oil. He was right. He saw an 86% return on his investment.
In 1987, hedge fund manager Paul Tudor Jones was one of the few people who predicted the Black Monday crash. He saw it coming, reduced his stock market holdings and saw a 200% return for his investors and a paycheck of $ 100 million for himself.
Another bet placed in 1987 was when Andrew Krieger, a currency trader, took a short position against the New Zealand dollar for hundreds of millions. He earned $ 300 million for his employer Bankers Trust when his sales positions exceeded New Zealand’s total money supply.
George Soros was born in Hungary and survived the Nazi occupation during the Second World War. He emigrated to London where he worked as a waiter and train carrier while studying at the London School of Economics. He moved to New York and created his first hedge fund in 1969. This fund was a huge success and became known as the Quantum Fund. He caused a sensation during the black Wednesday monetary crisis in the United Kingdom in 1992 when he earned $ 1 billion in a day after anticipating that the British government would devalue the pound. He became known as “the man who broke the Bank of England”.