Melvin Capital AGAIN Reports Losses (also Mudrick Capital, Light Street, etc.)
So I’m currently a bystander in the current GME frenzy. I have been very skeptical and I came to believe that "it’s going to go down. Hedge funds will take both sides.".
It seems I might be in the wrong.
You know the hedge fund that was supposedly out of GME positions?
Yap. That ‘Melvin Capital’.
Melvin Capital and Light Street Capital, two US hedge funds hard hit by the January rally in stocks popular with retail investors, suffered further losses in May.
Melvin, the highest-profile casualty of this year’s meme stock rally, lost another 4 per cent last month, people familiar with its performance said.
Hedge fund losses from betting against five popular meme stocks — GameStop, Bed Bath & Beyond, AMC, BlackBerry and Clover Health — total about $6bn since the start of May, according to the data firm Ortex Analytics.
Melvin Capital is currently at a 44.7 percent loss YTD while Light Street Capital is down 20.1 percent.
Looks like there are still hedge funds that actually haven’t learnt. It might be the case some actually doubled tripled down again.
And that Mudrick Capital that took advantage of AMC shares to sell directly to the public at higher prices? Well, even with all that unfair advantage, Mudrick Capital actually came out behind of AMC.
After weeks of profiting from the stock and debt of AMC Entertainment Holdings Inc., hedge fund Mudrick Capital Management ended up with a 5.4% loss after a derivatives bet went haywire.
I am not your financial advisor or whatever. But it seems that there will always be shorts.
Let’s look at brokerages like IBKR: https://iborrowdesk.com/report/GME
Definitely still shorted for many of these ‘meme stocks’.
Weird world we live in. I was a doubter but it seems:
“We can remain retards longer than they can stay solvent”
has a lot of truths behind it. At this rate, I really wonder what the actual retail ownership % of shares like AMC and GME are. I really wouldn’t be surprised if the ownership shares go over (if not already is) 100%. And I wouldn’t be surprised if there are some retards that just decide ‘to keep throwing money every paycheck for years’ if needed. After all, there’s finite number of shares end of day. And these ‘meme stocks’ have very low market cap and is very realistic to run out of shares with the number of users in this subreddit.
Anyways, I have no positions in GME/AMC stocks. I am just amazed after all my skepticism that there are hedge funds that still didn’t do proper risk management.
via r/wallstreetbets https://ift.tt/3qhG8Zq
June 11, 2021 at 05:06PM