Posted on 01/31/2021 8:40:55 AM PST by Zhang Fei
Hedge fund Melvin Capital Management lost 53% in January amid a record rally in GameStop and other stocks the fund was betting against, according to The Wall Street Journal citing people familiar with the matter.
The heavy losses come as retail investors piled into popular hedge fund short targets, including the struggling video game retailer. Shares of GameStop finished last week with a gain of 400%, bringing its total return this year to 1,625%. The stock closed Friday’s session at $325. As recently as October it traded under $10.
CNBC’s Andrew Ross Sorkin reported last week that Melvin Capital closed out its short position in GameStop on Tuesday afternoon after sustaining heavy losses. Citadel and Point72 infused close to $3 billion into the fund to shore up its finances.
Melvin’s assets under management now stand at more than $8 billion — including the emergency funding — down from roughly $12.5 billion at the beginning of the year, according to the Journal.
(Excerpt) Read more at cnbc.com ...
Thaaaaaat’s a shame. I’m all for free market capitalism and investment. The billionaires can do whatever they want within the law. And us little people can play within the rules to our advantage as well.
Look up XRP/Ripple for the next opportunity... coming early Monday morning.
Monday should be very interesting in the Silver Market as well.
Melvin Capital closed out its short position in GameStop on Tuesday afternoon”
Then who is still holding short positions totaling >100% of the shares?
This week I’m investing in very tiny violin stocks.
Yep.
Something tells me she doesn't feel the same way about elections.
We should send them $600 to help them out.
I’ll be watching silver very closely, especially PSLV and WPM. PSLV jumped Friday when I was napping. I’ll be ready tomorrow.
[Then who is still holding short positions totaling >100% of the shares?]
Somebody sure is. Goldman is whining about collapse today if this squeeze continues. Hmmmm
Someone’s lying.
In all actuality I have some compassion for people trying to manage funds and for stability. We all have our money in there in some way or another.
The problem lies in the truth that the rules are apparently only for the big people; when little people play the same “game,” and it is a game, they get called out and shut out and scolded on a national level for perfectly legal investing.
Let’s all play by the same rules. If rules need changing they need to be applied to all.
AG
Quick, Melvin! Sell part of your hedge fund to Hunter Biden. Even 10 or 15% might be enough. Then just sit back and wait for the inevitable government “orderly market” bail out.
This week I’m investing in wondow ledge deadbolts.
Any hedge fund in existence would have happily bankrupted another one and make billions in the process if they had had the resources and wills to do it, without thinking twice about it.
End of the day they (and other) put so much short pressure on the stock they presented this opportunity and someone(s) took advantage of it.
Hopefully it will be a lesson learned
Point72 is owned by Steve Cohen who just bought the Mets. There is no way in hell he "infused" $billions into Melvin unless his empire was being rocked also.
Who is loaning the stocks sold short?
The owners’ “Custodians” using the fine print of the custodial agreements?
I notice she has STFU about Amazon all a sudden now that Amazon happily serves the democrat party’s interests.
Melodrama for the idiots in Washington they own to get them to bail their arses out again.
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