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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

#161

Post by WJW »

JumpCrisscross wrote: post #37
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…

> 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 Is it anger motivating people to buy? I get mixing anger in with the greed and hysteria. Were I to play blackjack with the house being, I don't know, the Sackler family, I'd certainly get a high out of it and I'd certainly bet more. But I wouldn't be at the tab…

> Were I to play blackjack with the house being ... the Sackler family, I'd certainly get a high out of it and I'd certainly bet more.

You playing at a gambling game with negative expected value against people you hate and you want to give them MORE money? I'm sure they'd love that. Any casino prefers irrational customers over the ones that can do math. (The ones that can do math are still welcome, just not as appreciated)

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

#162

Post by dashundchen »

TheTrotters wrote: post #74
paulgb wrote: post #46

Earlier quoted context omitted.

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.

Just to clarify from the article - the Ontario Pension Fund was invested and cashed out stock in a commercial real estate company called Macerich that was getting associated with Gamestop on /r/wsb, not Gamestop itself.

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

#163

Post by dgfitz »

dcolkitt wrote: post #92
dclusin wrote: post #72

Earlier quoted context omitted.

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.

The difference is the HN hype train might cause you some headaches from picking an immature tech stack. Whereas the WSB echo chamber has literally ruined thousands of people's lives and retirements.

There seems to be the narrative that WSB ruined the retirement accounts of thousands of people. Why do we not hold the person responsible for their actions? Why is it never the fault of the person, but instead "the ephemeral entity" who is to blame?

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

#164

Post by WSB_Mod »

thuganalyst wrote: post #38
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

Same here. I used to love talking shit on WSB. Unfortunately that can’t happen anymore since the culture has changed completely. Long time members know just how awesome that community was, and I think it’ll never be the same.

I understand this sentiment, but please be patient with the subreddit. I believe there are bright days ahead.

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

#165

Post by WJW »

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.

> punish the HFs

This became the goal for some people. The original goal (way back when nobody knew who /u/deepfuckingvalue was) was to get rich on a short squeeze, because the counterparty on that trade had made a dumb gamble. If it had been some pension fund or even just retail investors on the other side that would have been fine too.

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

#166

Post by dubcanada »

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…

> It turns out the promise of riches is enough to make any community lose it's collective mind.

Is that really news? I am fairly certain that has been true ever since humans had a currency.

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

#167

Post by handmodel »

randomdata wrote: post #122
handmodel wrote: post #78

Earlier quoted context omitted.

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.

Depending on how you think the fund should be divided for wealth purposes, if we assume an equal division, the fund alone puts many Ontario teachers into the top 1%. Never mind what other wealth they may have. They are the 1% you are talking about. I expect what you're really saying is that the political opposition opposes strangers who are perceived as being different, whereas the top 1% comprised of teachers are re…

No - this isn't close to true. I'm saying (at least in the US) you need a net-worth of 10M to be in the top 1%. Or, in terms of income, make 500k a year household income.

The Ontario Teacher's Pension Fund averages member 600k per member in assets (200B divided by 330k members). I don't know the Canadian stats but having around 1M in assets as a 60 year old places them around the top 20% or 10% cut-off - not the top 1%.

https://dqydj.com/top-one-percent-united-states/

Regardless, I don't care if people get rich but it is clear that occupy Wall Street was a movement against the perceived notion that billionaires were exploiting the rules - not that teacher's pensions funds were gaining 2% per year more than an index fund.

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

#168

Post by Retric »

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…

Only a tiny fraction of HN posts on any specific topic. HN is effectively filtering their user base to those who care about some specific topic. Often this mixes the experts with the misinformed, but it really depends on the link.

For example, if you post that putting high efficiency solar panels on an EV could significantly offset the need for charging infrastructure people will respond very differently depending on what the original topic was. Aesthetics, implementation, practicality, cost, and your specific calculation etc go from critical to unimportant depending on the topic.

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

#169

Post by arminiusreturns »

z9e wrote: post #115
cashewchoo wrote: post #86

Earlier quoted context omitted.

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…

I struggle to see the political claim that these people are being flooded with Trumpers. This event was and has been pretty bipartisan. From what I’ve seen thus far is the media trying to use the Q / Trumper angle against this community to tarnish its public perception and recent novelty. I am happy to be proven wrong though, I just don’t see it.

While gp is right about the influx of users (Ive only been around wsb for 4 years or so), which I will address later, I agree with you on the tarnishing tactic being used. What I saw was very open "fuck the big money people" that transcended party lines, often explicitly.

That said, there are sure to be a large portion of "the right", on the sub, as the fact of the matter is that a significant percentage of the US is!

As for what caused the influx, I think you can blame reddit for getting rid of all the edgier communities, and lots of people like that sort of thing, so over the years as a wsb post hit /all the numbers would jump because people would say " hey, I like this place, its edgy and self-deprecating" and over time it changed the demographics. I think back then though people mostly lurked, this influx has caused a lot more mime-posting.

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

#170

Post by dcolkitt »

ChrisLomont wrote: post #150
dcolkitt wrote: post #66

Earlier quoted context omitted.

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…

>Deviating from buy-and-hold indexing is mathematically a zero-sum game. If buy and hold indexing is not mathematically zero (which I agree it is not), then plenty of deviations from it are also not zero sum (which is empirically true). Any stock gives partial ownership of a (hopefully) productive asset. Larger collections of them (like index funds) provide some reduction in volatility, but index funds are by no mean…

I mostly agree with what you're saying.

But the probability that that the average WSB retail investor reconstructs a Robinhood account with superior mean-variance optimization than an index fund, is about the same chance that my dog builds a fusion reactor after getting into my toolbox.

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