Ackman Doubles Down on Bond Short That’s Still Flawed
The hedge fund manager is making money, but scrutiny of market moves suggests inflation expectations aren’t driving yields higher. Real rates are.
Staying short.
Photographer: Christopher Goodney/Bloomberg
Some seven weeks ago, hedge fund investor Bill Ackman laid out his rationale for shorting long-term US bonds, and I took exception.
Since then, 30-year Treasury yields are up about 34 basis points and grazed the highest level in 12 years, and Ackman has taken to X — the platform formerly known as Twitter in which he’s an investor — to double down on his earlier call. But while I’ve been humbled by the moves of recent weeks, I still think that his logic is flawed and that if he makes any more money on the trade, he may be right for the wrong reasons.