Melvin Capital – Page 2 – Financial Treason & Crime

Robert J. Shapiro | 21.02.03

The investors’ struggle over the video game retailer GameStop has been cast as a David versus Goliath story. Allegedly, this is the tale of scrappy, small online day traders buying shares of a beleaguered company to thwart a hedge fund scheme to take it down. Like GameStop’s stock, this narrative is mostly speculation because the facts about the buyers and sellers and their trades are hidden in the records of Robinhood, the new online trading platform, as well as Charles Schwab and other traditional broker-dealers. Only the SEC could demand to inspect those records.

Continue reading “Article: GameStop Isn’t a Popular Uprising”

02/03/202102/03/2021

Article: In the ‘Reddit vs Wall Street’ Battle, Muddy Waters sees a Smokescreen of Internecine Warfare Between Hedge Funds

Uncategorized

SCMP | 21.02.02

“When we get tagged as establishment, you can’t be more inaccurate than that,” he said. “It’s almost funny if it weren’t for the fact that I now have all these people trying to troll me.” What Block agrees with is the growing sense that financial markets are overvalued and predominantly small investors will be hurt when the bubble finally bursts. He faults the Federal Reserve for pumping in too much liquidity, allowing for too much credit extension and too much leverage.

Continue reading “Article: In the ‘Reddit vs Wall Street’ Battle, Muddy Waters sees a Smokescreen of Internecine Warfare Between Hedge Funds”

02/03/202103/17/2021

Article: Short Squeeze Stockbrokers And Hedge Funds Face Proposed Antitrust Class Action

Uncategorized

Joseph Saveri Law Firm | 21.02.02

On January 28, many brokerages abruptly and unilaterally restricted retail investors’ ability to buy long positions—in some cases removing the option to buy shares of the relevant securities while openly permitting them to sell their existing shares or prohibiting users from viewing the tickers for some or all of the relevant securities.

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02/03/2021

Hedge Funds are Getting Crushed by the Worst Short Squeeze in a Quarter Century

Article - Media

Matt Egan | 21.02.02

“His Risky Bets Made Him A Million on Paper. It could’ve gone very differently.”

A mob of traders on Reddit’s WallStreetBets page have sent GameStop (GME), AMC (AMC) and other stocks skyrocketing in recent days. GameStop lost a quarter of its value Monday but it’s still up nearly 1,200% on the year. WallStreetBets successfully triggered an epic short squeeze, where investors that bet against GameStop have been forced to unwind their bets and buy the stock back. That in turn has driven GameStop even higher, creating even more losses for short-sellers.

Continue reading “Hedge Funds are Getting Crushed by the Worst Short Squeeze in a Quarter Century”

02/02/2021

How Redditors Beat Hedge Funds at Their Own Game(Stop)

Article - Media

21.01.27 | By Eric Levitz

But the value of a company can’t be reduced to its expected future earnings. One must also consider a wide range of other factors. Among them: How much nostalgia does the firm inspire in users of the Reddit forum r/wallstreetbets? And would a rally in GameStop shares be funny? Which is to say, has the firm crossed the “so bad it’s good” threshold, as inadvertent comedic masterpieces like The Room or Troll 2 had done before it?

America’s top hedge funds failed to ask these questions. Fortunately, the collective wisdom of rational market participants ensured that they were eventually incorporated into GME’s stock price. And, as of 3 p.m. Wednesday afternoon, a share in the GameStop corporation attained its true, objective value of $321.14.

Continue reading “How Redditors Beat Hedge Funds at Their Own Game(Stop)”

02/01/202102/03/2021

Carson Block Suspects Hedge Fund Coordination in Short Squeezes

Article - Media

Erik Schatzker | 21.02.01

Carson Block, the activist short-seller famous for targeting Chinese frauds, recognizes familiar behavior in the rally of shares such as GameStop Corp. To him, the parabolic moves look less like the product of Reddit-driven retail orders than a short squeeze by hedge funds targeting other hedge funds.

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01/30/202102/02/2021

Alert Reader: This is going to be ugly… 100% necessary, but very ugly.

Letter

This is going to be ugly… 100% necessary, but very ugly.

Continue reading “Alert Reader: This is going to be ugly… 100% necessary, but very ugly.”

01/28/202103/04/2021

Article: Steve Cohen’s enormous GameStop losses are his own fault

Article - Media, Publications

Steve Cohen’s enormous GameStop losses are his own fault

DENNIS YOUNG, 28 January 2021

For Mets fans hoping for a hard reset under new owner Steve Cohen, one of the richest men ever to buy an American sports team, this offseason has been depressingly familiar.

The team hasn’t splurged on any major free agents or extended any of its own young talent. They had to fire the GM for being outed as a serial sexual harasser just a month after he was hired. And, most alarmingly for the Mets’ competitive fortunes, Cohen has quickly lost a ton of money on an ill-advised investment. Point72, the $19 billion hedge fund owned and operated by Steve Cohen, is down 15% this year, according to the New York Times. Continue reading “Article: Steve Cohen’s enormous GameStop losses are his own fault”