Everybody’s very sad that Blackrock lost $17 Billion in Russia gambles. Maybe we should start a crowd fund for them?
One of the Blackrock hedge fund teams saw the war in Ukraine as a great way to make some quick money, because, well let’s face it that’s what the hedgies do best isn’t it.
Unfortunately for them, they got absolutely REKT. Naturally, we’re ever so sad for them.
Bloomberg is reporting that the Emerging Frontiers Fund lost over 10% in February, marking the teams biggest loss in a decade, and overall the fund is down 7% so far this year.
According to an investor letter, Russian stocks accounted for some of the biggest long positions the fund had taken, with the head of the team reportedly telling investors he raised the bet further after the invasion of Ukraine began in earnest at the end of last month.
It’s almost like Blackrock were behaving like WSB Apes, and we’d like to remind the team there that they are always welcome to come and post their loss-porn on the subreddits anytime they like, so we can all have a bloody good chuckle together.
“We believe the risk reward of being long Russian equities is favorable relative to the risk we see of conflict,”Hilarious cockup from Blackrock (from investor letter)
Blackrock lost $17 Billion in Russian stocks in total, but isn’t alone. Other funds getting killed too!
But it gets worse. Not only was the Emerging Frontiers Fund getting slaughtered, it appears that in total Blackrock lost $17 Billion in Russian assets, and suspended all purchases from the country on February 28th.
And they aren’t the only company which has been getting destroyed largely due to the sanctions which have been placed against Russia following its invasion of Ukrained. French banksters BNP Paribas says it has an exposure of over $3B combined in Russia and Ukraine, similar to Deutsche Bank, and just a little more than Bond trading leviathan Pimco, which is on the hook for around $2.6 Billion if the Russian sovereign debt payments cease (which looks increasingly likely). Source: Axios
And they’re not the only ones. Massive positions by Societe Generale and Citibank are reported to be around $30 Billion combined, and there doesn’t seem to be any respite for these companies coming soon.
This could further lead to margin call pressures on some of these funds, which some apes are speculating could trigger a wave of squeezes. It’s certainly true that instability in the market could lead those institutions which we believe to be bagholding synthetic shares in memestocks such as GME and AMC to be forced to cover, and this could lead to a potential MOASS event.
Here at KGL, we would like to extend our sympathies to those hedgefunds suffering colossal losses after investing in war. We are deeply sorry that Blackrock lost $17 Billion in Russia, and sincerely hope that they don’t lose any more money. Honest.