Hedge funds rethink after GameStop pain
Laurence Fletcher, 15 April 2021
Hedge funds are to revise the way they monitor risk after retail investors sent the price of stocks such as GameStop soaring — triggering big losses for the fund managers that bet against them. Investors co-ordinating their purchases on Reddit’s WallStreetBets message board were able to drive up the share price of Gamestop, the US video game retailer, from less than $20 at the start of the year to more than $480 by late January, while the prices of some other beaten-down stocks also soared. For some hedge funds, that proved painful.
