Extracts from an article by Joe Mellor, author for The London Economic.
“After Carillion collapsed with huge losses, news emerged that hedge funds made around £300m since the Government contractor began to fail.
BlackRock – which recently hired former chancellor George Osborne on a salary of £650,000 for one day a week – the world’s biggest fund manager made over £16 million across its funds.
Now as outsource giant Capita said that dividends would be suspended and the share price plummeted, hedge funds made £90m. IHS Markit indicated that 8.2 per cent of the Capita shares were used to bet on the hope the company would fall on hard times. One hedge fund firm booked £30m in a day.
The firm employs 70,000 people, about 50,000 of whom are in the UK.
According to Tussell, a firm which analyses UK public sector contracts, Capita won 154 government contracts last year.”
Read the full article on The London Economic website.