Stanley Druckenmiller, Hedge fund manager, on Thursday said that he had purchased the shares of General Electric when the stock had taken a double digit plunge. The statement comes in the wake of a report from Harry Markopolos who is a whistleblower from Madoff had accused the conglomerate of conducting a fraud akin to the one in Enron.
He admitted to buying the stock on the day when he gave a statement to Kelly Evans of CNBC. Druckenmiller had already owned a significant 6.2 million shares of General Electric as per the filings which were made
Druckenmiller’s news led to a cutting of losses of GE shares however the shares were still down by 11 % and were further headed for its worst fall in last eleven years
Markopolos’ accusations were categorically denied by Lawrence Culp who is the CEO of the company. On Thursday, he had counter accused the report of being malicious and only meant for purely and simply manipulation of market
Markopolos was the one who brought to notice Bernie Madoff’s Ponzi-scheme, many years prior to its falling apart has targeted GE during an investigation for which he has been financed by an anonymous hedge fund. The Investigator has said that he has given the report to the said hedge fund and also to the regulators before its dissemination in public on Thursday and has also said that he had bet against the stock of General Motors
The investigations have been centered around the irregularities in accounts of GE’s oil and gas venture as well as its long term care insurance venture.
Druckenmiller, the CEO of Duquesne Family Office, had once made bets against the shares of GE which was the 17th largest holding for the Duquesne family office as per InsiderScore.com