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.

The Misunderstood Warning

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 interview and dropped to 10% by the time he finished. Despite the public reaction, Ackman maintained his appearance was intended to signal market opportunity.

He stated in the CAZ Investments podcast with Tony Robbins, on Sept. 8, 2026, that he went on television to announce Pershing Square was actively “buying stocks.” He advised the U.S. president to mandate a 30-day national “spring break” to let the virus pass, arguing that such a policy would stabilize the country and present an unprecedented buying window.

Executing the $2.6 Billion Hedge

Ackman said in the podcast that he began tracking the health and economic risks of COVID-19 in January 2020. Concluding by February that the global economy would need to close, he built a large defensive position in the credit default swap (CDS) market.

When global markets plunged just two weeks later, this $27 million investment turned into $2.6 billion.

A Contrarian Shopping Spree

Rather than holding the cash, Ackman redirected the $2.6 billion windfall into the equity market in March 2020. Pershing Square purchased shares across its existing portfolio, securing positions in Hilton at $55 a share and home improvement retailer Lowe’s Companies Inc. (NYSE:LOW) at $70 a share, said Ackman.

Ackman credited Pershing Square’s permanent-capital structure with giving him flexibility to invest during the market turmoil.

Because he did not face short-term redemption pressures from investors, he could ignore the immediate volatility and purchase durable businesses at steep discounts while the rest of the market panicked.

How Have Markets Performed Since the COVID-19 Crash?

The COVID-19 crash began on Feb. 20, 2020, when the S&P 500 index closed at 3,373.23, now 126.42% higher at 7,637.76 points. Similarly, the Nasdaq 100 has risen from 9,627.83 to 29,446.98, a 205.85% change, and the Dow Jones Index gained 77.20% from 29,219.98 to 51,778.04 points.

In 2026, the S&P 500 index has advanced 11.36% year-to-date. Similarly, the Nasdaq Composite index was up 13.70%, and the Dow Jones gained 7.02% YTD.

On Thursday, the SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq-100, respectively, closed higher. SPY rose 1.13% to $762.60, while QQQ rose 1.73% to $716.92. Meanwhile, the Dow tracker, State Street SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA), also ended 0.61% higher at $518.35.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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