Soft­Bank ‘gains $4bn’ from tech bet

The Daily Telegraph - Business - - Front Page - By Hannah Boland

SOFT­BANK is re­port­edly sit­ting on trad­ing gains of about $4bn (£3bn) af­ter a se­ries of colossal bets on eq­uity de­riv­a­tives by founder Masayoshi Son.

It has spent $4bn on op­tions pre­mi­ums fo­cused on in­di­vid­ual US tech­nol­ogy stocks in the past few months, ac­cord­ing to the Fi­nan­cial Times, which said the move had helped pro­pel such stocks to record highs in re­cent ses­sions.

Claims first emerged last week that Soft­Bank was the “Nas­daq whale” which was pump­ing up the US stock mar­ket with no­tional ex­po­sure of about $30bn.

By the mid­dle of last week, the US eq­uity mar­ket had ral­lied by around 55pc since March.

In­vestors are braced for a fresh bout of po­ten­tial volatil­ity this week. Re­cent days have seen sig­nif­i­cant tur­bu­lence on the mar­ket, with stocks tum­bling. The de­cline was pinned on in­vestors switch­ing out of tech stocks amid fears the sec­tor had surged too far.

Soft­Bank’s trad­ing gains are yet to be re­alised and a fur­ther de­cline could hit the firm’s re­turns.

The strat­egy was said to have been di­rected by Mr Son. Soft­Bank de­clined to com­ment.

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