American hedge fund boss Bill Ackman has made $2.6 billion by betting against the markets just days after stoking fears by saying 'hell is coming' and begging President Donald Trump to shut down the country amid the coronavirus pandemic

American hedge fund boss Bill Ackman has made $2.6 billion by betting against the markets just days after stoking fears by saying 'hell is coming' and begging President Donald Trump to shut down the country amid the coronavirus pandemic.

The Pershing Square Capital Management hedge fund manager said his firm had made $2.6billion from a one-off bet that the coronavirus outbreak would cause a global market crash.

His firm seized upon bond market turmoil during the coronavirus crisis in buying 'credit protection on various global investment grade and high-yield credit indices'.

The bet, which was designed to protect Pershing Square Capital Management from falling stock markets triggered by the pandemic, saw his firm make almost 100 times its initial $27million investment.

The firm completed the transaction on March 23.

The enormous return came barely a week after Ackman gave an emotional television interview claiming 'hell is coming' for American business.

Ackman told CNBC on March 18 that 'hell is coming'.

He urged American business to stop share buybacks and to preserve cash.

'America will end as we know it. I'm sorry to say so, unless we take this option,' he warned.

'We have an invisible, silent, deadly enemy. How do we kill it? Everyone just goes home.'

Desolate scenes - Wall Street in New York stands almost empty amid the Covid-19 outbreak

He warned the hotel and service industry would be compromised by the market turmoil, and that Boeing 'will not survive' without a government bailout.

In a Twitter rant that same day, Ackman urged President Trump to shut down the country for a month, saying it was the 'only answer' to spare the nation from economic catastrophe.

'Mr. President, the only answer is to shut down the country for the next 30 days and close the borders. Tell all Americans that you are putting us on an extended Spring Break at home with family. Keep only essential services open. The government pays wages until we reopen,' Ackman tweeted.

'No one defaults, no one forecloses. A 30-day rent, interest and tax holiday for all. The shutdown is inevitable as it is already happening, but not in a controlled fashion which is extending the economic pain and amplifying the spread of the virus.'

'With exponential compounding, every day we postpone the shutdown costs thousands, and soon hundreds of thousands, and then millions of lives, and destroys the economy.

'Please send everyone home now. With your leadership, we can end this now. The rest of the world will follow your lead. A global Spring Break will save us all.'

Later that day he clarified his remarks, saying: 'I am confident the president will do the right thing in temporarily shutting down the country and closing the borders. If that happens, we can win the war against the virus and the markets and the economy will soar.'

Despite Ackman's grave warnings, Pershing Square began to change tact once the US government moved towards a $2trillion stimulus package for its economy, which has now been passed by the Senate.

The hedge fund unwound bets on the market tumbling on March 23 - just five days after Ackman gave his stark warning.

Pershing Square then began using the money it had earned to buy up shares in various companies, including the Hilton hotel chain and the coffee franchise Starbucks.

It also bought shares in Berkshire Hathaway.

'We became increasingly positive on equity and credit markets last week, and began the process of unwinding our hedges and redeploying our capital in companies we love at bargain prices that are built to withstand this crisis, and which we believe will flourish long term,' Ackman wrote in an online post on Wednesday.

Pershing Square's profit from the trade could stack up as one of the most lucrative ever, if confirmed.

The hedge fund had reportedly been losing money in the first two months of 2020.

The Senate passed the unparalleled $2.2 trillion economic rescue package on Wednesday steering aid to businesses, workers and health care systems engulfed by the coronavirus pandemic.

The unanimous vote came despite misgivings on both sides about whether it goes too far or not far enough and capped days of difficult negotiations as Washington confronted a national challenge unlike it has ever faced.

The 880-page measure is the largest economic relief bill in US history.

In addition to helping 'Main Street' businesses, hard-hit airlines, US manufacturing firms, and other business, Americans could receive $1,200 each.

Married couples could receive $2,400 from the bill, and American parents could get $500 for each child under the age of 17.