Billionaire hedge funder Bill Ackman is suddenly more worried about a ‘slowing’ economy than inflation—and he’s putting his money where his mouth is

(Credit: Bryan Bedder—Getty Images for The New York Times)

On Aug. 2, billionaire hedge fund titan Bill Ackman revealed he was shorting, or betting against, 30-year Treasury bonds using options. The founder and CEO of Pershing Square Capital Management warned that “structural changes” to the global economy—including deglobalization, the green-energy transition, and increased worker bargaining power—would lead to an era of persistently higher inflation and, consequently, higher 30-year Treasury yields. (When Treasury bond yields rise, Treasury bond prices fall. This is why Ackman was shorting, or betting against, bonds.)

But now, Ackman believes that the economy may not be as healthy as it seems, and with conflicts in the Middle East and Ukraine raging, he’s decided to end his bet against 30-year Treasury bonds.