As a collapse in the oil price unleashed chaos in financial markets, Madrid money manager Diego Parrilla phoned a colleague who agreed: they had better head to work early in the morning. By daybreak in Europe, the price of crude oil had fallen by a third. The shock had turned worry about the coronavirus to full-blown panic, wiped trillions of dollars from Asian stocks and sent futures for European and US markets plunging. “We assessed the book,” said Parrilla, 46, who runs a €300 million ($332 million) fund that is long gold and bonds and uses options to bet on just about everything but dollars and volatility falling. “We were in a good position, he said. “We decided which parts of the portfolio we would take profits on first.” So began what became the worst week on Wall Street since 2008, which has left Parrilla one of the few winners in the shakeout that ended the longest bull-run in US history. His Quadriga Igneo fund is up 30% for the year to date. The wipe-out has also e...
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