The important thing being lost in all the chatter: Elon Musk didn't have a creepy grudge against this hedge fund, therefore it is a good hedge fund.
AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
21–30 of 313 posts
Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
#22I expect a lot of Redditors will be very disappointed when they realize just how much money hedge funds made, on average, out of this episode. The WSB moderators really did everyone a disservice by letting obvious misinformation flood the subreddit. It’s hard to view the later stages of the GameStop phenomenon as anything other than a Reddit-fueled pump and dump scheme.
Game theory inevitably takes over; I better sell before the next guy does and lowers the price even further. The only people with diamond anything are the ones who bailed and took their profits early.
Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
#23There’s a lot of anger against the financial system but unfortunately not much financial education to understand why it is working so poorly for average investors. That anger makes people lash out to try to change the status quo, which in this case caused Redditors to buy GME in spite of its ridiculously high valuation. But because they don’t actually understand the mechanics of the market the hedge funds will easily out maneuver them.
Melvin Capital was a big loser with their fund down 50%, but the funds that held GameStop made out fine. A lot more of the volatility was probably driven by hedge funds than people think, and a lot less driven by Redditors. A billion dollars is an insane amount of money and even 6 million wallstreetsbets members working together can barely make a dent in these prices.
At the end of the day hedge funds will be fine and retail investors will be left holding the bag. Their very real anger is valid, but should be turned toward the actual causes of financial injustice and not playing into the hand of hedge funds.
Ironically, the shorts who have been blamed for much of this mess are the only ones screaming about the broken regulatory system, including the toothless SEC, and warning about asset bubbles driven by low interest rates that are making it very difficult to responsibly invest. If average investors would listen to these contrary voices instead of breathless longs on CNBC they would have a more complete view of what’s happening in markets today.
Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
#24Title should be "Mudrick Capital Gains $200 Million on AMC, GameStop Bets" which is more accurate and less clickbaity than the current.
Mudricks position in AMC substantially predated any "hype" or "meme" economy impacts.
Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
#25I expect a lot of Redditors will be very disappointed when they realize just how much money hedge funds made, on average, out of this episode. The WSB moderators really did everyone a disservice by letting obvious misinformation flood the subreddit. It’s hard to view the later stages of the GameStop phenomenon as anything other than a Reddit-fueled pump and dump scheme.
I've been visiting WSB for couple of years now, and generally the mods have been really hands off, so them letting misinformation flood the subreddit is par for the course. Good or bad, that's how it is.
Honestly lots of investing communities are like this - do your own due diligence, etc. It is surprising how _much_ misinformation is being spread in WSB as of late, and feels like a weird cult more than ever, but WSB was never about heavy moderation.
Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
#26I expect a lot of Redditors will be very disappointed when they realize just how much money hedge funds made, on average, out of this episode. The WSB moderators really did everyone a disservice by letting obvious misinformation flood the subreddit. It’s hard to view the later stages of the GameStop phenomenon as anything other than a Reddit-fueled pump and dump scheme.
Not at all. The past few days they've shared not only the largest long holders of these stocks, but also the pension funds that were boosted as well. A few teacher pension funds got a good uptick and they were sharing that around. The cats at wsb might be self proclaimed retards, but they're not that stupid. They know lots of other folks are going to make money off of them. You know, if you actually visit the sub, yo…
Exactly this. Wasn’t the whole point to spite short sellers even if it meant losing some?
Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
#27"we did it, reddit!"
Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
#28Earlier quoted context omitted.
> The WSB moderators really did everyone a disservice by letting obvious misinformation flood the subreddit. Well, on the flip side a lot of redditors learned from the school of hard knocks, which is the best teacher in a lot of ways. Moderators suppressing posts won't teach a lesson you can only learn by losing money.
WSB moderators were (and still are) actively suppressing posts that don’t toe the line. I had a seasoned Reddit account that had been in WSB for a long time. As soon as I started commenting about how the short squeeze wasn’t a sure thing, my posts stopped showing up. They’ve been dismissing any comments that aren’t about GME going to the moon as hedge fund shills or bots. It’s extremely difficult to find any posts or…
I had to unsub (having been a member for years) because my homepage was full of, "WE ARE HOLDING:diamond: :hands:!!!!I :diamond: LOVE :hands: THIS :diamond: STOCK :rocket::rocket::rocket::rocket::rocket::rocket:" posts with 50k upvotes and a list of gold a mile long.
Edit: looks like emojis are stripped
Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
#29Earlier quoted context omitted.
> The WSB moderators really did everyone a disservice by letting obvious misinformation flood the subreddit. Well, on the flip side a lot of redditors learned from the school of hard knocks, which is the best teacher in a lot of ways. Moderators suppressing posts won't teach a lesson you can only learn by losing money.
Half of them may learn a lesson, but the other half will just blame hedge funds against for their own mistake.
It’s already turning into a conspiracy theory. The popular narrative is that GME would have continued going up, but RobinHood colluded with hedge funds to stop it. It doesn’t make any sense and ignores the incentives that RobinHood had to continue allowing people to buy.
However, when to they’ve become completely invested (some times literally) in the narrative that GME was going to make them all rich while the hedge funds went bankrupt, it’s difficult to admit that they were wrong.
Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
#30Earlier quoted context omitted.
Not at all. The past few days they've shared not only the largest long holders of these stocks, but also the pension funds that were boosted as well. A few teacher pension funds got a good uptick and they were sharing that around. The cats at wsb might be self proclaimed retards, but they're not that stupid. They know lots of other folks are going to make money off of them. You know, if you actually visit the sub, yo…
Any uptick a pension fund would have had was lost once GME reverted back. Pension funds are buy and hold, so they could care less about short term fluctuations in 0.05% of their portfolio.
GME didn't fully revert back yet, and I'm sure a lot of them realized their gains around the peak and sold.
Pensions dont make short term investments, they already had GME shares since a long time ago. They do sell when extraordinary circumstances happen and buy other stocks to hold long term again.