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”
Steven A. Cohen is an American billionaire hedge fund manager, He is the founder of hedge funds Point72 Asset Management and now-closed S.A.C. Capital Advisors, both based in Stamford, Connecticut. In 2013, the Cohen-founded S.A.C. Capital Advisors pleaded guilty to insider trading and agreed to pay $1.8 billion in fines in one of the biggest criminal cases against a hedge fund. Cohen was prohibited from managing outside money for 2 years as part of the settlement. The hedge fund agreed to plead guilty to wire fraud and four counts of securities fraud and to close to outside investors.
Steven A. Cohen
S.A.C. Capital Advisor
Point72 Asset Management