Ex-JPMorgan Trader Biggest Winner Betting Against Bank
Tuesday, July 03, 2012
Bloomberg reported that Andrew Feldstein, who bet against JPMorgan Chase before helping the bank unwind more than $20 billion of trades, has emerged as one of the biggest winners among hedge-fund managers profiting from a flawed strategy.
Bloomberg noted, according to market participants familiar with the trades, Feldstein's flagship fund BlueMountain Capital Management, which was on the other side of those wagers, stands to make as much as $300 million.
Bloomberg said, according to people with knowledge of the strategy, Feldstein, a former JPMorgan executive who helped the company create the credit-derivatives market, profited by exploiting price distortions caused by the outsized bets and then aiding the bank in unwinding the trades as it sought to cap the loss.