Frances O’Grady, general secretary of the TUC trade union center, launched a scathing attack on hedge fund managers on Thursday after it was revealed that a London hedge fund had bet £ 2.4 billion on the movements in the market as investors panicked over the global economy.
Crispin Odey, the Brexit supporter who made millions of bets on the pound in the run-up to the EU referendum, said his fund had made its biggest monthly gain since the financial crisis.
O’Grady said, “It is a sign of our shattered economy that hedge fund managers are reaping billions, while life-threatening caregivers can barely get by. Once the immediate crisis is over, we must rebuild a fairer economy. The super-rich should be forced to pay their fair share and ordinary workers should get the respect and the wages they deserve. “
Ruffer Investment, which was founded by multimillionaire financier Jonathan Ruffer, told its clients that it had made $ 2.6 billion (£ 2.4 billion) during the global stock market collapse induced by the coronavirus pandemic after a series of cheap bets on protective investments on market volatility, which have generated huge returns. . The story was first reported by the Financial Times.
It also emerged that a US hedge fund returned 4.144% by betting on a stock market slump of the year in late March. Miami-based Universa Investments, advised by The Black Swan author Nassim Taleb, returned 3.612% in March alone. “I think we have shown that Universa’s risk mitigation method is the most effective,” said Mark Spitznagel, president and chief investment officer of the fund, in a letter to investors seen by Bloomberg.
Odey Asset Management declined to comment on TUC’s call to hedge fund owners to pay a “fair share” in the fight against coronavirus. The fund returned 21% in March.
Odey, who has an estimated fortune of £ 800 million, privately told his clients that the world was facing a crisis as severe as the Great Depression in the 1930s.
In a letter to investors Thursday and reported by Bloomberg, Odey said, “It’s not like 2008-9, 2001-2, or even 1989-92. The fall in the world’s gross national product for this year will echo 1931-2. It was a terrible moment when countries and institutions disappeared and people like Adolf Hitler seized their chance to take control of Germany. “