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AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

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Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#61

Post by gowld »

JumpCrisscross wrote: post #51
randomdata wrote: post #33

Earlier quoted context omitted.

> A few teacher pension funds got a good uptick and they were sharing that around. The Ontario Teachers Pension Plan, who was holding GME, is one of the largest hedge funds in existence, worth over 200 billion dollars. For comparison, Maverick Capital is worth only $15 billion. That is not a case of some little guy teachers making out well, it is the rich (if not the richest ) hedge funds getting richer.

> The Ontario Teachers Pension Plan, who was holding GME, is one of the largest hedge funds in existence, worth over 200 billion dollars OTPP is a pension fund. Hedge funds are a different beast.

Hedge fund isn't a technical term, despite having "hedge" in the name. It just means an actively managed fund that anyone finds interesting in some way.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#62

Post by matwood »

texasbigdata wrote: post #24
kccqzy wrote: post #3

Title 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.

Yeah, prior to this meme, AMC was considered an acquisition target.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#63

Post by flatline »

camjohnson26 wrote: post #23

There’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…

> it is working so poorly for average investors

Is it? I've heard a lot of talk like this. The last decade has been spectacular in the markets. I know plenty of average investors who've outperformed the S&P by investing in tech, TSLA, etc. Real estate is on fire. I think a lot of average people are in dire straights right now, while a lot of average investors are doing quite well. And then there are the top 0.1+% who are doing disproportionately well, perhaps that is the larger source of the problem?

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#64

Post by mattnewton »

meibo wrote: post #39

People have been saying that(HFs having made more money out of this than they lost/will recover in a short time) for a while now, but I doubt that a lot of the cult-like newbie flood on WSB/other investment or crypto subreddits that has been getting "we rekd the billionairs" drilled into their head for the past 3 weeks in every crevice of the internet will acknowledge this. You can still see people "just pumping thei…

I think you missed the position this fund took, which I think was to bail out amc with a "distressed debt agreement" for shares, which they then used to make a killing. So, to me it sounds like it's really that long hedge funds profited from shorts and reddit investors were taken along for the ride if they had good timing. Shorts still "got rekt" and the people who helped bail out AMC were rewarded.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#65

Post by JumpCrisscross »

whereTheShares wrote: post #34

Can anyone explain the Fails-To-Deliver data for GME? Especially since its orders of magnitude greater than other companies. I feel like only half the story is being told! https://wherearetheshares.com/

It was and is a heavily shorted and volatile stock. It's anomalous relative to the rest of the market at this point in time. But there is almost always someone out on the long tail of settlement shitshows.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#66

Post by dcolkitt »

Gunax wrote: post #31

To the surprise of no one--the established, well-prepared and well-funded players out-compete Joe and Jane retailer investor. Everyone loves the David defeating Goliath at his own game narrative. I only worry that we are going to forget all of the times that David gets slain.

There's a simple lesson. Buy and hold a low-fee index fund. Stop trying to pick stocks. And for God's sake stop trying to day trade stocks.

Deviating from buy-and-hold indexing is mathematically a zero-sum game. Winning this game is also one of the most monetarily rewarding games on Earth. It's extremely unlikely that you're anywhere near good enough to win this game. If you don't know who the fool at the table is, it's probably you.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#67

Post by compiler-guy »

garmaine wrote: post #6
thefounder wrote: post #4

"Nobody" thought some hedge funds or bond holders would win along the ride, right? Regardless if they were tipped off about the restrictions in advance or not I think they were good citizens taking risks and helping two companies found in distress due covid.

The restrictions were at the brokerage level and only affected retail investors.

This is because the big kids use big kid's brokerages. Which is to say, well capitalized brokerages that communicate well with their clients on possible capitalization needs.

It is no shock at all that a cheap broker with a million new clients wasn't sufficiently well capitalized for a big kids play.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#68

Post by tshaddox »

umvi wrote: post #10
PragmaticPulp wrote: post #2

I 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.

> 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.

That's clearly not a lesson one can only learn by losing money.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#69

Post by randomdata »

freeone3000 wrote: post #49
randomdata wrote: post #33

Earlier quoted context omitted.

> A few teacher pension funds got a good uptick and they were sharing that around. The Ontario Teachers Pension Plan, who was holding GME, is one of the largest hedge funds in existence, worth over 200 billion dollars. For comparison, Maverick Capital is worth only $15 billion. That is not a case of some little guy teachers making out well, it is the rich (if not the richest ) hedge funds getting richer.

Right, but, it actually is the Ontario Teacher's Pension Plan. It's not simply the name, it actually is the pension fund for Ontario's teachers.

A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction and risk management techniques to improve performance, such as short selling, leverage, and derivatives.

That is what the OTPP does. That the hedge fund exists to fund pensions is irrelevant. If you dig into the investors behind other funds, you are likely to find that they are also investing to help fund their own retirement.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#70

Post by ufotothemoon »

whereTheShares wrote: post #34

Can anyone explain the Fails-To-Deliver data for GME? Especially since its orders of magnitude greater than other companies. I feel like only half the story is being told! https://wherearetheshares.com/

Everyone should see this! Spread the information as far and wide as possible. Something very odd going on with failure to deliver data on GameStop. Hold your shares!
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