Business Maverick: SoftBank’s Big Options Bet Tests Investor Faith in Masayoshi Son

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Just when investors thought Masayoshi Son was reining in risk at SoftBank Group Corp., the Japanese billionaire’s foray into highly leveraged derivatives is giving them fresh reason to worry.

SoftBank shares tumbled 7.2% on Monday in Tokyo, erasing about $9 billion of market value. The drop came after the conglomerate made massive bets on high-flying technology stocks using equity derivatives — and despite one report that it has billions in paper gains.

“Son is a speculator — not this visionary everyone claims he is,” said Amir Anvarzadeh, a market strategist at Asymmetricin Singapore who has been covering SoftBank since it went public in 1994. “This is yet another proof of that, as he is never too far from the action when a bubble is formed.”in August that it was establishing an asset management arm to trade public securities and mentioned it could use derivatives.

 

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