Investor turned $ 27 million into $ 2.6 billion

US hedge fund investor and manager Bill Ackman completed what is called the “best deal of all time” with a net profit of $ 2.6 billion.

According to a MarketWatch report, Ackman was convinced in February that the coronavirus pandemic would have more impact on the stock market than most analysts predict. Ackman, who is the founder and CEO of Pershing Square Capital Management, created a $ 27 million hedge with the idea of ‚Äč‚Äčtaking advantage of the stock market bubble. The only thing about such a move is that it requires very accurate timing.

In the end, Ackman grabbed the stock near its bottom and made $ 2.6 billion of his bearish bet.

Ackman explained the idea behind the timing of his trade in a recent podcast of ‘Project Knowledge’.

“We said, ‘You know, we have a massive position … that has the potential to double if credit spreads widen to the levels of the financial crisis. But if that doesn’t happen and the government takes adequate steps, that hedge could cost zero and the stock market can go back to where it was. ‘

And so we decided to close the position. “

Ackman went on to say his hedge fund used his profits to invest more than $ 3 billion in risky assets. Since March 23, the S&P 500 has grown more than 25 percent, contributing to a billionaire investor with profits.