Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

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

bloomberg.com

Post reply on HN
Print view View original

81–90 of 313 posts

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

#81

Post by jb775 »

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…

This explains what's actually happening right now: https://www.youtube.com/watch?v=gMShFx5rThI&feature=youtu.be

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

#82

Post by duxup »

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 populist atmosphere surrounding it all was very attractive, to me included.

But I worry that like a lot of heated populist rhetoric it is misguided, or even entirely dishonest.

We just went through a presidency with someone who loved populist rhetoric, but whose actions were anything but. It happens a lot sadly.

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

#83

Post by notyourwork »

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…

> You know, if you actually visit the sub, you'd know that.

I'm not sure this part is needed for you to convey your point.

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

#84

Post by [deleted] »

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…

[deleted]

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

#85

Post by dougmwne »

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 threads and far too much reverence for a cesspool.

I think HN likes to believe it is evidence based and rational instead of emotional and greedy. A more enlightened and civilized corner of the internet. I have not been seeing much of that lately. It turns out the promise of riches is enough to make any community lose it's collective mind.

Here is a truism for you all: In any casino the players may win or lose, but the house always wins. If you think any bet is a guaranteed win, you have lost your rationality.

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

#86

Post by cashewchoo »

simias wrote: post #55
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…

>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 course). But it was fun to shitpost about it. This is astrology for finance bros.

And it'd been going a bit down-hill already, but most people were still that same description: young blood, day job in finance, knows what they're doing at both a mechanical and risk level, etc. And the content reflected it.

Then somehow, one of those internet things happened. WSB became a hit, people flooded in, the mod team was overwhelmed, media attention flooded in making everything worse, etc. I feel like this is what a lot of /r/the_donald people ended up now that they're looking for a new cause. So much of the rhetoric I saw once the WSB Old Guard had been overwhelmed mirrored the kind of stuff you saw out of the_donald back in 2016.

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

#87

Post by randomdata »

gowld wrote: post #56
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.

It's wrong to conflate largeness with richness. John Simon's personal $1B fund is far more rich than a 10000-member $100B pension fund.

A personal investor wouldn't be appropriately called a hedge fund, though. A hedge fund is, by definition, funded by a pool of investors. We are talking about hedge funds here.

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

#88

Post by SignalNotSecure »

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…

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

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

#89

Post by cj »

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.

GME's 52 week low is $2.57.

Without knowing when they entered their position. It was hovering around $4 for a long time last year.

Even if they bought in at $5, selling at $20 is absolutely a win. Yes, they could have gambled and HODL'd, but there's no reason to gamble after seeing a 4x increase on a stock very few people expected would ever break $10.

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

#90

Post by Gunax »

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…

I think you're absolutely correct. Stock picking is roughly a winner-take all game where you are facing off against incredibly smart and prepared people.

Unfortunately, I have heard of several people[1] that have switched from passive funds to research and stock picking. One week of market silliness may have un-did decades of teaching the public to not pick individual stocks.

While it's nice that more people are going to start reading 10-Qs and learning what a put is, it's almost certainly going to be a net-negative.

[1]https://twitter.com/TrumpSC/status/1354197824494325764

Post reply on HN