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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

#71

Post by gowld »

tinyhouse wrote: post #42
mywittyname wrote: post #28

Earlier quoted context omitted.

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

This is exactly the problem. Every thread has 1000s of comments and it's very hard to find the good ones since 90%, including many of the most upvoted ones, are garbage. Cannot blame them given the 7M members who joined the sub in 2 weeks. For now I stick to r/stocks.

All I know about /r/stocks is that since last week wsb-style GME junk posts are spamming /r/popular.

But maybe non frontpage posts are better.

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

#72

Post by dclusin »

015a wrote: post #50
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.

Its funny how people don't see the $100,000+ portfolio losses (and much less often, gains) all over that subreddit and don't immediately realize that a ton of the people who visit it are Wall Street finance people. That's seriously the meme among the people only secondarily connected with WSB; its not "autists" or "the vox populi", its wall street bros (WSB?) who have to spend all day being super serious at their job…

Whereas Hacker News is just a bunch of people who don't know what they're doing pretending to be experts to influence the actual idiots. You can find charlatans pretty much anywhere money or people with money congregate.

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

#73

Post by donarb »

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.

They may be a pension fund, but they do use hedge funds to balance their portfolio.

https://www.otpp.com/investments/performance/investment-stra...

"Additionally, we complement our efforts by using external hedge fund managers, which gives us access to unique approaches that both add performance and diversify risk."

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

#74

Post by TheTrotters »

paulgb wrote: post #46
EugeneG wrote: post #17

Earlier quoted context omitted.

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.

Just because a fund’s normal MO is to buy and hold doesn’t mean they’re asleep at the wheel and won’t react if their value hypothesis is (more than) realized overnight. (Ontario Teacher’s Pension Fund sold almost 25M shares, for example https://www.bloomberg.com/news/articles/2021-01-29/reddit-fe... )

NB: They sold 25M shares at ~$20/share. That's probably much more than what they paid for these shares but it's nowhere near where GME was over the past few days.

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

#75

Post by 3327 »

NoOneNew wrote: post #8
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.

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…

Hi Autist from WSB here. Diamond hands, and deepfuckingvalue we trust. DD is gold.

not selling is Diamond. Stick to your guns. Don't let the Algos shake u out.

See you techies in Valhalla.

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

#76

Post by crocodiletears »

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…

Is there actually a way to target the financial system? Seems to me the best anybody could have hoped for was to make a hedgefund bleed.

So far as I can tell, there's no political way to meaningfully touch that segment of society. Politicians can't be trusted to regulate such a complex system, even if they could be trusted not to be bribed into compliance. The existing regulatory institutions seem captured. Even poking at the hive with $gme seemed to cause institution involved to close ranks, and try to delegitimize retail traders, even discounting all brokerage's decision to limit trading on the stocks.

A lot of people want their pound of flesh for '08, especially young folk who's families lost everything.

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

#77

Post by umvi »

tshaddox wrote: post #68
umvi wrote: post #10

Earlier 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.

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

Some people learn not to touch fire by reading a book or learning from the mistakes of others. For others, the only way they learn not to touch fire is by touching it.

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

#78

Post by handmodel »

randomdata wrote: post #33
NoOneNew wrote: post #8

Earlier 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…

> 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.

I highly doubt anyone is against pension funds making money - even if they are run as a hedge fund.

The political opposition to hedge funds has to do with the fact that they often cater (or are assumed to cater) to the 1%. Who cares if it is 200B? It probably represents the financial interests of tens-of-thousands of teachers.

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

#79

Post by simias »

ehsankia wrote: post #48
NoOneNew wrote: post #8

Earlier 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…

There are plenty of "Average people" that entered near the top, and since not everyone can sell simultaneously, that means a ton of people are losing the life savings they dumped into this out of excitement as it crashed back down. I think the point being made here is that the whole narrative of "average people beating wall street" is pretty naive and quite bullshit. All in on, maybe a few handful of people got 10x o…

Lurking the wsb threads now it's clear that none of these people have exit strategies, or even strategies at all.

Even if that fabled squeeze was to take place I'm sure many of them would still be left holding the bags because they wouldn't know when to sell. And again, at this point I'm really not sold on that squeeze theory at all, it seems very plausible that it ended last week and now we're just seeing a good old pump-and-dump taking place.

In the end some people are going to be very lucky and some others are going to learn a very expensive lesson about the dangers of gambling.

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

#80

Post by paxys »

noncoml wrote: post #43

I thought the goal was to punish the HFs that were shorting GME, which was pretty much achieved. I don’t think anyone(reasonable) was expecting the rest of the financial market to sit back and watch and miss the opportunity to join the party.

A LOT of people bought GME at $350 thinking they would get rich. Propoganda on WSB basically convinced you that it would go to $1000 next week. At some point it stopped being about hedge funds and became a standard pump and dump.
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