SoftBank ‘gains $4bn’ from tech bet
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.