%% Funny you mentioned that. Tell me if you can\ its so hard to understand. Why's the fat man busy dancing+ the thin man pays the band?? Its so hard to understand. Why's the rich mans busy trading + the poor man pays the band?? Travis Tritt Song/Paraphrase =Lord have Mercy On The Workin Man. Overall Melvin is still better than average; but pity the clients that got in his fund late-53% in one month was it?? Nobart as noted before, good thing it was not a 60% dd;STAY IN THE GAME..................................................................
Anyone knows what is Melvin Capital's compounded annual returns since inception after the abrupt >50% loss?
TA is not bullshit but you make a good point that with Melvin's AUM to manage, he has a far more challenging problem that retail elitetraders here. GME's short interest was more than 100% at one point. I don't know how much of that was from Melvin. However, I expect any risk manager seeing a stock with a senseless >100% short interest would have insist on reducing the short exposure to this single short. Maintaining a huge short on this kind of shorted stock is bad bad risk management and suggests undisciplined greed.
It seems more like the hedge fund managers are newbie, rookie, amateur, inexperienced, greenhorn hedge fund managers who do counter-trend / against the flow/grain trading and accumulate tons of losses.
To add on, any stock which has >100% short interest makes it an easy target for short squeeze, even if the business fundamentals is terrible enough to make it a good short candidate. Proper risk management means one should lighten up on risk exposure to this kind of excessively shorted stock.
It’s not less than an inspiration for retail traders to see how fund managers trade. They are more than just making investments. They are willing to learn regardless of whether they make profits or losses.