Day 19 of UK lock down: hedging their bets

Recently there have been some heart-chilling reports of how hedge funds are making massive profits out of this global crisis.

https://www.thisismoney.co.uk/money/news/article-8112273/Millionaire-hedge-fund-bosses-Sir-Paul-Marshall-Ian-Wace-make-50m-coronavirus-crash.html

https://www.9news.com.au/world/bill-ackman-hedge-fund-bet-coronavirus-economy-collapse-pershing-square-capital-management-finance-news/aa519075-202d-4bbb-a853-432240d6bcac

For those of us who normally try not to think too much about the murky world of big finance, this raises the question of what the hell is a hedge fund anyway ?

Seemingly, the hedge bit means a barrier, to prevent losses whether the market is expanding or contracting, so investors will profit either way.

And one of the most dodgy aspects of these dodgy funds is the concept of short selling. Investors look for stock whose worth is likely to drop in the short term, before bouncing back. For instance, budget airlines in a time of global immobility which, despite the hopes of anyone who gives a stuff about the environment, are likely to come back with gusto as soon as the lock downs are lifted, regardless of whether they manage to wheedle some publicly funded bailout from the governments.

So, essentially, hedge funds are a means by which the richest 10% of the global population, who already own 85% of global wealth, can get even richer by betting on the outcome of catastrophes.