Bill Ackman Said ‘Hell Is Coming' in 2020 — How a $27 Million Hedge Turned Into $2.6 Billion as He Bought the Crash

Pershing Square CEO Bill Ackman warned that "hell is coming" in March 2020 before executing a $27 million credit hedge that generated $2.6 billion in proceeds, which he subsequently redeployed into equities during the COVID-19 market crash.

During a 28-minute CNBC segment in 2020, Ackman recounted a private conversation he held with Hilton Hotels Corp. (NYSE: HLT ) leadership. Ackman advised the company to draw down credit lines, deposit cash, and defer capital expenditures because a global economic shutdown was imminent. “Hell is coming,” Ackman stated. The "hell is coming" portion of the interview drew significant attention as U.S. stocks were plunging. The broader market was down 6% when Ackman began his interv.