2015 was a year where many top traders took a bit of a financial tumble. But, that wasn’t the case for all. The following brilliant traders made bold, unconventional moves that made them billions of dollars.
Mr. John Armitage, of the $15 billion firm, Egerton Capital LLP, made a bold decision when he went against the grain and bet against oil last year. Nearly every trader was convinced that oil prices would crawl back up over the course of year, and in doing so, would help keep oil-related equipment providers afloat. But Armitage was not biting, and his hesitation came from two major sources:
- There was concern about emerging markets.
- The Organization of Petroleum Exporting Countries had/has the ability to restrict the global production of petroleum.
John Armitage’s gut made him a winner. Both oil and the oil-field service providers continued to lose value over the course of 2015, while his “bearish” bets gained Egerton Capital LLP $1.5 billion.
Ms. Melissa Ko, of Covepoint Capital Advisors LLC, also made some very profitable, bold moves last year. Founder of her own firm, Melissa is no stranger to fearless actions. She bet against the euro, Australian dollar, and Brazilian real while commodities were plummeting and no one else was doing so. Her bets gave her a 120% return on investment. Melissa continues to like the Dollar in 2016, especially against Emerging Market currencies.
Founder of Maverick Capital Ltd, Lee Ainslie, is another who joined the ranks of profitable “bear”-better. Lee made some brilliant moves when it came to his hunches last year. He held reservations about Apple stock, but was not inclined to be the only investor that bet against the market’s golden child. So instead, he targeted all of the manufacturers involved in the creation of Apple products and accessories, and wagered against them. His bets paid off when the economy dipped in the summer of 2015, and Apple’s shares fell 15% in the remaining months of the year. Maverick’s profits had Ainslie to thank when they were increased by more than $1 billion by the end of the year.
To see the full article from the Wall Street Journal, click here.
Melissa Ko is the Managing Member of Covepoint Capital Advisors, LLC and serves as the Chief Investment Officer of its flagship, the Covepoint Emerging Markets Macro Fund. Please visit https://about.me/melissako, https://melissakoblog.wordpress.com/, http://melissakocovepoint.tumblr.com/, and http://www.slideshare.net/MelissaKo1 to learn more!