The world’s largest hedge Fund Bridgewater Associates made a bid of $1.5 billion on a fall in world stock markets by March next year, reports the Wall Street Journal, citing familiar with the situation sources. We are talking about the put options contracts for a given amount, which give investors the right to sell shares at a certain price by a certain date. For Bridgewater Associated this bet will pay off if the early spring will drop the S&P 500, Euro Stoxx 50 (or decrease both indices).
Interlocutors of WSJ explained that was the reason for the bet, which was the most significant forecast for a fall.
In fact, Bridgewater Associates did not at first comment on the WSJ message, however, after some time the statement was made by the founder of the hedge Fund billionaire ray Dalio, who said that the material is incorrect. “Should state clearly that we didn’t bet on falling market”, – he wrote in his Twitter. “We live in a world where some authors consider its main business of publishing sensational headlines, even if the facts don’t measure up. You can trust me and can believe the author of the WSJ”, he added.
“We told the author of the material Juliet Chang that accusing us in the game for a fall, she introduces the reader astray. Nevertheless, the material came out,” said Dalio.
In the WSJ said that these articles are based on several interviews, but because of publication management is prepared to accept the author’s conclusions.
In the Bridgewater later reported that the Fund does not intend to explain my motivation. While there pointed out the very careful statements of various investors and analysts in the background of the recent rise of stock indices.