NEW YORK : Hedge funds have lost billions of dollars as COVID-19 has stalled the economy and sent Wall Street into a tailspin. But the financial institutions favored by the world’s richest investors are plotting a recovery by betting on the markets’ slump. US-based hedge funds are aiming to persuade clients that the current economic crisis and the uncertainties in fact present a unique investment opportunity, according to letters sent to clients viewed by AFP. In their discussions with current investors and potential new clients, some of these funds are emphasizing that stocks, corporate bonds and commodities have not been as cheap since the 2008 global financial crisis, according to sources close to the institutions. “We only take new capital when we see opportunity on the markets,” a source at The Baupost Group hedge fund said in an interview, speaking on condition of anonymity. For the first time since 2011, Baupost is asking clients for more money to buy aggressively, and recently put $1.5 billion into depressed assets. A spokesperson for the fund declined to comment. Billionaire Kenneth Griffin was one of the first to warn of the COVID-19 outbreak’s dangers, and his hedge fund Citadel has gone so as far as to create a specific investment vehicle for assets battered by the virus fallout. However, the funds’ bets may not pay off since it is unclear how many investors are interested in taking risks as many are putting their money into safe assets.