A few months back, the world’s biggest hedge fund enlisted Goldman Sachs and Morgan Stanley to help structure a massive bet that will pay off if, between now and the end of the first quarter, global stocks retreat. According to WSJ, Bridgewater has amassed a giant $1 billion bet using put options.
If the S&P 500, Stoxx 50 or both decline before Bridgewater’s put options expire, the firm will make money from the bet. If stocks rise, then those options will likely expire worthless.
The firm paid $1.5 billion – or roughly 1% of its $150 billion net worth – for the options, which have a notional value of $100 billion. mehr hier