The world’s
400 richest people lost $70.2 billion from their collective net worth this week
amid a global selloff that sent the Standard & Poor’s 500 Index to its
biggest weekly drop in two years.
“Some hedge funds have made long bets on
Fannie Mae (FNMA) and Freddie Mac preferred with the idea that some of the
profits captured by the government from the bailout might rightfully come back
to shareholders,” Walter ‘Bucky’ Hellwig, Senior Vice President of BB&T
Wealth Management, said in a phone interview. “Freddie Mae and Fannie Mac
preferred dropped precipitously, so long positions there got slammed.”
Global equities have lost $3.5 trillion in
value since reaching a record last month. European Central Bank President Mario
Draghi clashed with Germany’s finance minister yesterday over the steps needed
to revive growth in the euro area, while Federal Reserve officials have said
the U.S. economy may be at risk from a global slowdown.
The Stoxx Europe 600 (BNK) Index retreated 4
percent, its worst week since May 2012, while the S&P 500 closed at
1906.13, down 3.1 percent.
‘Huge
Mistake’
Berkshire
Hathaway Inc. (BRK/B) chairman Warren Buffett, 84, said last week that his
investment in struggling U.K. supermarket business Tesco Plc (TSCO) was a “huge
mistake.” Hedge funds including Lansdowne Partners LP and Lone Pine Capital LLC
began betting against chains including Tesco amid speculation the worst isn’t
over for the industry.
Berkshire controls about 4 percent of the
company, making it the fourth-biggest shareholder. Buffett has a $67 billion
fortune and is the world’s third-richest person, according to the Bloomberg
ranking.
Bill Gates remains the world’s richest person
with a net worth of $81.8 billion. The 58-year-old Microsoft Corp. co-founder
dropped $2.8 billion this week as the Redmond, Washington-based software maker
tumbled 4.5 percent.
(Πηγή: bloomberg.com)
