. The group also purchased several new investments including Starbucks, reestablishing the previous investment in the coffee chain that Pershing sold in January.
The hedges Pershing used were purchases of credit protection on various global investment-grade and high-yield credit indexes that had "minimal" risk of loss as they were purchased near the all-time tightest levels of credit spreads, Ackman wrote. Going forward, Ackman said that the portfolio is likely to see higher turnover during the period of market volatility brought on by the coronavirus pandemic.
Even though Ackman is betting on a US recovery following the coronavirus pandemic, he said that he thinks the best course of action is for the government to lock down the entire country for a month. Ackman said that upon completion of such a lockdown, the country could be carefully reopened, as has been recently seen in China. The key to a successful reopening is a broad-based testing regime and tracing program, in addition to social distancing, hand washing, mask use, and other practices, he said.
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