What happened to hedge funds shorted GameStop?

What happened to hedge funds shorted GameStop?

A London-based hedge fund that took on heavy losses betting against GameStop in January has closed its doors, the Financial Times reported Tuesday, becoming one of the first casualties of retail traders’ piling into unpopular or heavily-shorted “meme stocks” that saw some financial mainstays lose billions.

How much have hedge funds lost shorting AMC?

June 15, 2021, at 7:05 a.m. (Reuters) -Investors shorting “meme stock” AMC Entertainment Holdings are estimated to have lost about $512 million on Monday after a rally that sent the cinema operator’s shares up more than 15\%, data from financial analytics firm Ortex showed.

How much did hedge fund lose on GameStop short?

The hedge funder whose GameStop short bets led to a 53\% January loss took home $846 million in 2020.

What hedge funds were affected by GameStop?

Hedge funds such as Melvin Capital Management took the brunt of losses from soaring stock prices of GameStop and other heavily shorted stocks. Others made a ton of money on the rally, including Senvest Management, which had a profit of nearly $700 million, The Wall Street Journal reported.

How much did AMC short sellers lose?

Short-sellers betting against retail favorite AMC lost $512 million on Monday, according to Reuters citing data from Ortex. The loss is massive, but it doesn’t come close to the $2.8 billion that short-sellers suffered at one point during an earlier rally for the theater operator.

How much are short sellers losing on AMC?

The picture was bleaker for those who had targetted GameStop, with the data revealing that the short sellers’ year-to-date losses stood at $6.44 billion. Cumulatively, this shows that AMC and GameStop short-sellers have lost $10.52 billion as we exit the third quarter.

Who lost the most on GameStop?

Two big hedge funds, Melvin Capital and Citron Research, are thought to have been the most exposed. The former is believed to have lost around 30\% of its $12.5 billion under management already this year on a series of shorts, which includes GameStop.

What’s wrong with hedge funds?

Another problem with hedge funds is that many of them lock up investor money for relatively long periods of time. In other words, an investor cannot redeem (withdraw) their money until a number of months or years has passed, even if the fund fails to perform.

Why are hedge funds hated?

Some people don’t like hedge funds because they don’t produce tangible services and lack the understanding of how a service like that could be useful to society. Large incomes don’t help either, but most people have no idea of the amount of work it takes to get it done. Financial stereotypes since the Middle Ages.

Is Gamestop shorted?

The stock is heavily shorted According to Yahoo Finance (data from July 14), GME’s short interest ratio is 18\% of the float. The metric is high and comparable to the levels that preceded the most recent short squeeze in June – even if not anywhere close to the 100\% of early January.

Which is shorted more AMC or GME?

As of June 29th, 75.48 million shares of AMC were short compared to its free float of ~448.74mn shares. For GME, short interest as of June 29th 2021 was ~8.22 mn shares. Even when the short squeeze began during late May, the number of shares short was just 11.97 mn compared to the free float of 56.41 mn shares.

How many GameStop shares were sold short?

Approximately 140 percent of GameStop’s public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further.

What happened to the GameStop short squeeze?

Short sellers who had bet against GameStop suffered large losses as a result of the short squeeze. By January 28, 2021, Melvin Capital, an investment fund that heavily shorted GameStop, had lost 30 percent of its value since the start of 2021, and by the end of January had suffered a loss of 53 percent of its investments.

Which trading platforms are blocking buys of GameStop?

Trading platforms such as UK-based Trading212 and Israel-based eToro blocked buys of GameStop and other stock while continuing to allow sales. Webull halted buy orders for stocks affected by the squeeze, but soon thereafter allowed orders to continue.

Can hedge funds short options?

Market pros say hedge funds may be wary of putting on shorts, and instead may create positions in the options market that would take the role of a short. As for individual investors, they have grown to about 20\% of the market from the low teens, as retail trading surged during the pandemic.