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.
Almost one billion was wiped off the Capita’s stock market valuation, and shares fell almost 50 per cent, in a day following the bleak outlook for the company.
The winners of the Carillion scandal – making £300m from the Government contractor’s collapse
Since you are here
Since you are here, we wanted to ask for your help.
Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.
Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.
If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.
To donate or subscribe to The London Economic, click here.
The TLE shop is also now open, with all profits going to supporting our work.
The shop can be found here.
You can also SUBSCRIBE TO OUR NEWSLETTER .