Financial market trades are a risky business and it takes a special type of genius to succeed in this sector. Over the years, the world has seen some exceptional trades. Read on to know the best seven.
2/8
George Soros: In September 1992, George Soros made USD 1 billion in a day after his fund sold more than USD 10 billion in pounds. This led to the UK government exiting the European Exchange Rate Mechanism, devaluing the pound instantly and Soros minting money. (Reuters)
3/8
John Paulson: When the financial crisis of 2008 struck, John Paulson’s fund made between USD 3 billion and USD 4 billion. Thinking that mortgage market will never collapse, banks were heavily investing in subprime mortgage-backed assets. He felt otherwise and started getting banks to write credit default swaps on these assets. All he had to do was cash in. (Reuters)
4/8
Kyle Bass: Similar to Paulson, Bass also made USD 3-4 billion by shorting subprime mortgages before the 2008 financial crisis. (Reuters)
David Tepper: Head of a New Jersey-based hedge fund, Tepper bought severely depressed bank stocks heavily in early 2009. By the end of the year, Bank of America quadrupled and Citigroup tripled from its post-crash lows. Tepper’s fund made USD 7 billion in the process. (Reuters)
6/8
John Arnold: In 2006, Centaurus Energy’s John Arnold began betting on its rival, Amaranth LLC’s natural gas positions which later collapsed and lost USD 6 billion. Arnold netted a massive 200 per cent return from this trade. (Reuters)
7/8
Andrew Hall: In 2003, when crude oil was USD 30 a barrel, Hall, a trader with Citigroup’s trading division Phibro, correctly predicted that it would touch USD 100 a barrel in the next five years. He bought a lot of long-dated oil futures. Phibro made a lot of money and Hall alone made USD 100 million in bonus. (Reuters)
8/8
Jesse Livermore: Just before the 1929 crash, Jesse Livermore successfully shorted the American market, earning a massive USD 100 million at that time. (Reuters)
