Hedge funds including Bridgewater Associates and Marshall Wace are making a killing on their wagers against financial stocks in Italy as the nation’s political turmoil reverberates through Europe’s periphery. Banco BPM SpA and Intesa Sanpaolo SpA were some of the biggest losers on Monday and Tuesday as Italy’s populist parties began mobilizing for an early election, raising fears of another looming crisis in in the region. The contagion spread to financial shares in Portugal and Spain, with Banco Comercial Portugues SA, the biggest loser in the sector. The Euro Stoxx Banks Index was down 4.6 percent.