Mystery trader '50 Cent' has been unmasked

The volatility market's greatest mystery has been solved at long last.The identity of"50 Cent," the investorwho earned the nickname by buying gobs of volatility contracts costing roughly that much, has been revealed.Turns out it's Ruffer LLP, a $20 billion investment fund based in London whose client roster includes the Church of England. The fund was co-founded by Jonathan Ruffer.Financial Timesreporters Joe Rennison,Christian Pfrang and Miles Johnson were the ones to blow the lid off the case, citingfour people from trading departments at banks who are familiar with the trades.Ruffer's investment vehicle of choice has been theCBOE Volatility Index, or VIX, a measure of expected price swings inUS equities that serves as a barometer for investor nervousness. It generally climbs as stocks fall, so purchases of VIX contracts translate to bearish wagers on the S&P 500.As of earlier this week, Ruffer had spent $119 million this year betting on a stock market shock, $89 million of which had expired worthless, according to data compiled by Macro Risk Advisors. The investor has gradually amassed holdings of about 1 million VIX calls through three occasions so far in 2017, and each time a significant portion expired at a loss.Blame a subdued VIXfor the futility.The fear gauge was locked in a range between 10 and 14 for the first three months of 2017, and while it's since climbed as high as 15.96, it's been stuck well below 14 since a single-day plunge of 26% nine daysago. Earlier this week, the index closed at the lowest level since February 2007.But that doesn't mean Ruffer is giving up. Already loaded up on May contracts, the firm has continued to buy cheap VIX calls expiring later in the year ' wagers costing about 50 cents.SEE ALSO:The market is baiting copycats of the mystery trader called '50 Cent'SEE ALSO:A mystery trader called '50 Cent' has already lost $89 million but can't stop betting on a stock market shockJoin the conversation about this storyNOW WATCH: 15 things you didn't know your iPhone headphones could do
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