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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

#101

Post by WA »

dcolkitt wrote: post #66
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, i…

Not as simple. With buy and hold of index funds, you limit your upside. There is close to zero chance to make 1,000% within a year. Stock picking has potentially a bigger downside, but also more upside.

This being a zero-sum game doesn’t matter, if you have either an edge or are simply lucky. So instead of saying it’s all bullshit, it probably makes more sense to put 90% in index funds but expose yourself to a bigger upside with stock picking.

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

#102

Post by ojnabieoot »

zionic wrote: post #41
ojnabieoot wrote: post #21

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.

Nothing about Elons valid and, in my opinion, morally correct statements disparaging short sellers was creepy.

"Long buyers, who have an incentive to push positive propaganda about a company they are invested in (regardless of whether or not it is true), are good."

"Short sellers, who have an incentive to push negative propaganda about a company they are invested in (regardless of whether or not it is true), are bad."

This is self-evidently incoherent and is actually being too generous to Musk, who in real life is even stupider than my strawman[1]. And Elon Musk obviously has a creepy grudge against short sellers, as evidenced by his disgraceful comments in a 2018 analyst call[2]. The only thing approaching a principle that Musk has bothered to offer is that short sellers can hurt companies by artificially pushing the stock price down. But long buyers can hurt competitors by artificially pushing a stock price up! There's no "moral" difference. Musk just has absolutely no leg to stand on here - which is why he's myopically focused on Reddit and Twitter instead of people who are actually competent about finance.

The only reason Elon Musk is "morally" opposed to short sellers is that they are hurting his personal bank account, and he's not satisfied with being merely the richest person in the world. And the only reason you share his opinion is that you are caught up in his cult of personality. Looking at your comment history: read more news and less Reddit.

[1] https://twitter.com/elonmusk/status/1354890601649610753

[2] https://financialpost.com/investing/musk-takes-aim-at-analys...

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

#103

Post by SpicyLemonZest »

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.

Perhaps at first. But if you browse through WSB right now, the prevailing narrative is that it wasn't achieved; the hedge funds are lying, they haven't stopped shorting, and you'd better keep buying and holding or the hedge funds will win.

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

#104

Post by decafninja »

cashewchoo wrote: post #86
simias wrote: post #55

Earlier quoted context omitted.

>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, you'd know that. The sub you seem to like so much died last week. Whatever is left of it has been diluted when literally millions of people flooded it. "Eternal September" hit them hard. Right now it's filled with Q-level conspiracy…

So much this. /r/wallstreetbets is going to struggle to recover. It's absolutely Eternal September. I've been subbed to WSB for about 5 years, ever since someone at work (prop trading) mentioned it as basically being a bunch of 25-30 yo finance people hanging out and doing dumb shit in their personal accounts for fun. I'll admit, I did some dumb stuff myself, trying to time UVXY/TVIX plays. (Basically netted 0 of cou…

Seems the daily thread grows so big so fast that it becomes dog slow to even browse.

But yeah, a lot of the comments are just one liner garbage memes: HODL! TO THE MOOOOOON! FISTS ON CHEST NO FEAR! TO VALHALLA! DIAMOND HANDS! As well as echo chamber "encouragement" to HODL! until $1000/$9000/the moon because Mark Cuban is on our side!

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

#105

Post by Ekaros »

SignalNotSecure wrote: post #88
ehsankia wrote: post #48

Earlier quoted context omitted.

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…

I think there is a name for people positioning themselves in the market on the advice of self-proclaimed "retards and autists"

Or absolutely anything hyped in headlines... It should be clear that once something is in mainstream press it is usually too late.

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

#106

Post by yaitsyaboi »

dougmwne wrote: post #85

Watching HN get caught up in this Gamestop bubble over the past week has been eye-opening to me about the community. The kind of information being spread around WSB was fully ridiculous. Wild conspiracy theories, financial advice with no basis in reality, astroturfing, and mob behavior. There has been an incredible amount of bleed-over between the garbage I've seen posted on WSB and the things posted in these HN thre…

All the speculative mania in here was like 1/1000th of the stuff on WSB.

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

#107

Post by razster »

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.

https://reddit.com/r/dataisbeautiful/comments/lbdfbp/oc_fail... Might be worth a read. Comments are interesting as well.

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

#108

Post by cccc4all »

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.

Most large holdings are public record. Anyone can see which institutions held what positions.

Everyone knew who stood to gain and who stood to lose in the short squeeze.

WSB crows was going after the short squeeze, anyone that got gains just rode the wave and knew when to step off or not.

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

#109

Post by fortran77 »

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…

> , that means a ton of people are losing the life savings they dumped into this out of excitement as it crashed back down.

Let's hope that Congress doesn't try to bail these people out!

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

#110

Post by cperciva »

notyourday wrote: post #94
ehsankia wrote: post #48

Earlier quoted context omitted.

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…

> 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. Most of "average people" entered at or near the top. The ones that did not were so engaged in gambling that they did not sell when it did 20x return. Call it what it is: fear of missing…

I think DeepFuckingValue is smarter than you give him credit for. It's worth leaving $20M on the table if it lets you tell the SEC "look, I'm clearly an idiot, there's no way I could have been deliberately engineering a pump and dump scheme".

Better to take $15M of profit than to gamble $35M on the SEC deciding not to prosecute.

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