How Hedge Funds Created the Financial Crisis

The True Villians Behind the Financial Crisis

Kimberly Amadeo

Hedge funds caused the 2008 financial crisis by adding too much risk to the banking system. That’s ironic because investors use hedging to reduce risks. They use sophisticated, data-based investing strategies. It allows their analysts to find out more about individual companies than an average investor could. They exploit and take advantage of any unfairly priced stocks. That makes share prices more fairly valued. By reducing risk, hedge funds lower stock market volatility.

Hedge funds profiting from Covid-19 ‘must give more back

MICHAEL BOW

Hedge fund tycoons have made £1.5 billion in profits by shorting UK shares during the financial crisis, according to Evening Standard calculations that triggered calls for curbs on their activities and a windfall tax.

Hedge funds are pouncing on companies infected by the coronavirus

New York (AFP) – Hedge funds have lost billions of dollars as coronavirus has stalled the economy and sent Wall Street into a tailspin. But the financial institutions favored by the world’s richest investors are plotting a recovery by betting on the markets’ slump.

US-based hedge funds are aiming to persuade clients that the current economic crisis and the uncertainties in fact present a unique investment opportunity, according to letters sent to clients viewed by AFP.

In their discussions with current investors and potential new clients, some of these funds are emphasizing that stocks, corporate bonds and commodities have not been as cheap since the 2008 global financial crisis, according to sources close to the institutions.

Hedge fund manager turns $27m bet into $2.6b payout

By Nick Pearson 11:52am Mar 26, 2020

A Wall Street hedge fund manager has turned a US$27 million (A$46 million) bet into a US$2.6 billion (A$4.4 billion) payout, all based on the economy collapsing.

Hedge fund tycoon Crispin Odey makes £115million from this month’s coronavirus
Coronavirus profiteering: Anger grows as hedge fund makes STAGGERING 4,144 percent return

By John Varga PUBLISHED: 06:02, Fri, Apr 10, 2020 | UPDATED: 11:25, Fri, Apr 10, 2020

Record numbers of people have either lost their jobs or seen them put on hold, as the killer virus has caused chaos to the world’s economy. In the UK 950,000 people have applied for universal credit in the last fortnight, whereas normally there is about 100,000 applicants for the benefit in any given two-week period. US workers have also been laid off in huge numbers and more than 6.6 million people filed jobless claims in the week ending April 4.

‘A Complete Abomination’: Mega-Rich Hedge Funds Swoop Down to Grab Covid-19 Small Business Relief Funds

Jake Johnson, staff writer

Some hedge funds “insist they are small businesses—just like hair salons, restaurants, and dry cleaners—that could use a helping hand,” Bloomberg reported.

As small business owners struggle to obtain desperately needed money from a first-come-first-served federal coronavirus relief program, some wealthy hedge fund managers are attempting snag a share of the $350 billion taxpayer fund with the help of high-powered legal firms that know how to quickly navigate the confusing application process.