Hedge funds are pouncing on companies infected by coronavirus

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Hedge funds are aiming to persuade clients that the current economic crisis and the uncertainties in fact present a unique investment opportunity. coronavirus

King Street Capital said in its pitch that it is looking for"high-quality companies that have seen their bonds or loans caught up in the sell-off."

Billionaire Kenneth Griffin was one of the first to warn of the COVID-19 outbreak's dangers, and his hedge fund Citadel has gone so as far as to create a specific investment vehicle for assets battered by the virus fallout. Named the Citadel Relative Value Fixed Income Fund, the vehicle is positioned to allow Citadel to take advantage of the current volatility, according to a stock market filing, a change from the financial crisis in 2008 when the fund's flagship investments posted losses of 55%.

"It's not a Chinese health crisis; it is a global health crisis," Griffin said of the new coronavirus in an early February speech to The Economic Club of New York. The virus, he warned, is"probably the most concrete short-run risk we see in the financial markets globally."Economists now expect the pandemic, which has killed upwards of 25,000 people worldwide, to lead to a global recession. In fact the International Monetary Fund said

 

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