How ‘the single best trade of all time’ netted one investor a $2.6 billion profit

Here is the link.

Ackman explained the thinking behind the hedge in a recent podcast.

“We said, ‘You know what, we’ve got this massive position ... which maybe has the potential to double if credit spreads widen to where they were during the financial crisis,” he told the Knowledge Project. “‘But if they don’t, and the government takes the right steps, this hedge could be worth zero, and the stock market could go right back up to where it was.’ So we made the decision to exit.”

At that point, Ackman explained, he got out with his tidy profit and started buying stocks. He then invested more than $3 billion in risk assets, a move that also proved prescient as the Fed started pumping money into the system and stocks rallied hard off the coronavirus bottom.