Tech • IA • Crypto
95% of French people will be RUINED by this crisis. Here's how the 5% get through
7/10TL;DR
High-profile investors have repeatedly profited from crises by hedging against collapse and buying distressed assets, a strategy highlighted by Bill Ackman’s controversial trades during the March 2020 market crash.
KEY POINTS
Ackman’s Pandemic Trade
In March 2020, as global markets plunged amid Covid-19 fears, hedge fund manager Bill Ackman warned publicly of an economic collapse, predicting severe damage to sectors such as hotels and retail. During this period, major indices fell sharply, with some stocks, including Hilton, dropping by around 20% in a single day. His televised comments coincided with heightened market panic and volatility.
$27 Million Hedge to $2.6 Billion Gain
Prior to the crash, Ackman’s fund, Pershing Square, had spent approximately $27 million on credit default protection, effectively betting against corporate credit markets. As spreads widened during the الأزمة, the value of this hedge surged to roughly $2.6 billion, representing a more than 100-fold return within weeks.
Simultaneous Buying of Distressed Stocks
While markets were falling, Pershing Square reportedly redeployed capital into equities that had been heavily sold off, including companies in hospitality and consumer sectors. These purchases were made at steep discounts, in anticipation of policy intervention and eventual recovery.
Policy Response and Market Rebound
The U.S. government and the Federal Reserve launched massive stimulus measures shortly after, stabilizing financial markets. Many of the companies hit hardest during the panic recovered significantly, amplifying gains for investors who bought at the bottom. Pershing Square’s funds ended 2020 up roughly 70%, compared to about 16% for broader markets.
Crisis Investing as a Broader Pattern
Ackman’s approach reflects a long-standing strategy among major investors: acting counter to market sentiment during downturns. Warren Buffett deployed $5 billion into Goldman Sachs during the 2008 crisis under favorable terms, later earning billions. Similar moves were repeated with Bank of America in 2011.
Distressed Asset Acquisitions
European billionaire Bernard Arnault built parts of the LVMH empire by acquiring struggling brands such as Christian Dior in the 1980s. Likewise, Xavier Niel invested heavily in Unibail-Rodamco-Westfield during the Covid downturn, betting on a post-pandemic recovery in commercial real estate.
Crises and Emerging Sectors
Historically, major crises have coincided with the rise of new industries. The Great Depression preceded expansion in automobiles and aviation; the 1970s crisis aligned with the birth of personal computing; the 2000 dot-com crash cleared the path for internet giants like Amazon and Google; and the 2008 financial crisis coincided with the emergence of Bitcoin.
Growing Institutional Interest in Crypto
By 2026, large institutions have accumulated significant cryptocurrency holdings. BlackRock and MicroStrategy together hold roughly 1.6 million Bitcoin, while companies such as Tesla and SpaceX also report sizable positions. These developments indicate increasing institutional exposure to digital assets, though the sector remains volatile and debated.
CONCLUSION
Crisis-driven investing strategies—combining hedging, opportunistic buying, and long-term positioning—have repeatedly generated outsized returns for major financial players, but they also raise ongoing questions about market influence, timing, and risk.