Melvin Capital sells out of GameStop

Discussion in 'Wall St. News' started by guru, Jan 27, 2021.

  1. BKR88

    BKR88

    Surprised the insiders haven't sold every single share they own.
    Won't be trading it (trading halts) but guessing it will have a large reversal today & close below 100.
     
    #11     Jan 27, 2021
    VEGASDESERT likes this.
  2. New meaning to "Getting Melvined." Think of Bill & Ted "melvining" Death.
     
    #12     Jan 27, 2021
  3. They have doubled down and saying closed out to make people go away.

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    Melvin Capital and Citron Capital closed out of their short positions on GameStop Corp. as the firms succumbed to the stock’s meteoric ascent.



    Melvin Capital closed its position after repositioning its portfolio, according to a spokesperson. Citron Capital’s Andrew Left also said Wednesday that the firm covered the majority of its GameStop short bets at “a loss of 100%” in a YouTube video.



    The gaming retailer surged even higher in U.S. premarket trading after an Elon Musk tweet fanned the flames of the stock’s rally that has sent the company’s market value beyond $10 billion.



    Short sellers have come under ferocious attack as crowds of retail investors pile into the least-loved names on Wall Street. The 50 most-shorted companies on the Russell 3000 Index have surged 33% so far this year, with the Goldman Sachs Group Inc. basket set for its best month since at least 2008.



    [​IMG]
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    GameStop’s stock whipsawed after the Melvin Capital move was first reported by CNBC. The shares were up 66% at $245 as of 6:37 a.m. New York time, having earlier more than doubled from the last close of $147.98.


    Read More: Short Sellers Crushed Like Never Before as Retail Army Charges

    Hedge fund titans Ken Griffin and Steve Cohen this week injected $2.75 billion into Melvin Capital after the firm lost about 30% this year. The capital infusion comes after Melvin Capital, which started the year with about $12.5 billion in assets saw short bets, including GameStop, go awry.

    The stock has risen more than eightfold this month in a dizzying rally fueled by Reddit-charged day traders. Melvin Capital’s retreat comes amid a warning by famed investor Michael Burry, who had a bullish stance on GameStop in 2019, that the surge has gotten out of hand.

    “This is unnatural, insane, and dangerous,” Burry, best known for his successful bet against mortgage securities before the 2008 financial crisis, said in a tweet on Tuesday.
     
    #13     Jan 27, 2021
  4. Like it! :)
     
    #14     Jan 27, 2021
  5. maxinger

    maxinger

    GAMESTOP trend is uptrend.

    It is soooo obvious even the blind also can see that it is uptrend!!!!


    How can traders/hedge funds see this simple chart wrongly ?!?!

    But honestly speaking, 3 to 4 decades ago, I did such stupid idiotic crazy
    thing many many many times. Those were the dark days.
     
    #15     Jan 27, 2021
  6. Daal

    Daal

    Its other people's money, they dont care. They rather hold and hope it turns around so they dont lose their AUM
     
    #16     Jan 27, 2021
  7. maxinger

    maxinger

    It seems more like they are newbies.

    If traders have been trading for say more than a year, you wouldn't ever dare to do counter trend trading.
     
    #17     Jan 27, 2021
  8. Pekelo

    Pekelo

    I wonder if they reshorted over 300? This puppy will be back under 100 in less than 2 weeks.
     
    #18     Jan 27, 2021
    BKR88 and blueraincap like this.
  9. It is just hard to say what will happen once a name has become a game character in today's everyone-has-money world. I was almost pulled into a short around 100 but didn't do, which if I did I would be shaking my tits now.
     
    #19     Jan 27, 2021
  10. cesfx

    cesfx

    I just bought a 40$ April put...
     
    #20     Jan 27, 2021
    Pekelo and blueraincap like this.