Saturday, 1 October 2016
Last updated 4 hours ago
Aug 30 2011 | 2:50pm ET
While Appaloosa Management doesn't have much good to say about Hurricane Irene, at least two of its peers may be quietly cheering the storm that brought death and destruction along the U.S. East Coast this weekend.
Tudor Investment Corp. sought to profit from the hurricane, which struck the New York City area, including Tudor's hometown of Greenwich, Conn. On Friday, the hedge fund's weather derivatives analyst suggested that a disastrous strike by Irene had a probability of only 35%, while a less serious hit had a probability of 75%. The hedge fund likely built a position in weather derivatives following the report, Business Insider reports.
It is unclear how much Tudor made on its Irene-based bets.
Meanwhile, Harbinger Capital Management's wireless Internet venture was able to use the disaster to trumpet a potential benefit of its satellite-based network.
"Given the tremendous impact Hurricane Irene has had on the East Coast of the United States, it is vital that first responders have unfettered access to reliable communications," LightSquared CEO Sanjiv Ahuja said. "LightSquared, working with Inmarsat, is committed to ensuring that those on the front lines of this national emergency have seamless connectivity with one another."
Harbinger was a major investor in Inmarsat until earlier this year.