Financial Times FT.com

Hedge funds left reeling as VW races on

By Richard Milne and Kate Burgess

Published: October 28 2008 19:55 | Last updated: October 28 2008 19:55

Volkswagen’s soaring share price seems certain to have inflicted heavy damage on some hedge funds and banks. Rough calculations suggest losses as of Tuesday night could be as high as €30bn ($38bn).

But the list of losers could extend far beyond the unlucky investors who bet wrongly on VW’s share price falling. One hedge fund manager caught in the crossfire says: “This thing will leave no winners.”

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