Mudrick Capital Management LP, a $3 billion-plus New York hedge fund that provided a lifeline to AMC Entertainment Holdings Inc. in December, made almost $200 million largely on AMC in January. The movie-theater chain, which had been fighting off bankruptcy, had been one of the retail cro...
A throng of rookie investors on Reddit drove up the stock price of GameStop, resulting in massive losses for Melvin Capital. Plotkin toldCNBC this weekthat the hedge fund closed out its position in GameStop and disputed claims that Melvin Capital would be filing for bankruptcy. The W...
are also lower. the possible bankruptcy also underscores how ftx's collapse has sent shockwaves through the wider crypto ecosystem that don't appear to be abating. genesis was said to have spent the past few days trying to raise at least $1b in new capital from potential investors amid it...
Hedge fund Melvin Capital Management required an investment of nearly $3 billion from two other funds to stabilize the company in the wake of GameStop's initial rise, although CEO Gabe Plotkin told CNBC that reports the company was on the verge of bankruptcy are false. Melvin says it...
In other cases, the shorts are so confident in their position, they go HOG WILD with low interest leverage and literally short the entire float of a company, trying to drive it into bankruptcy. Recently Melvin Capital and some other well-connected hedge funds went short GameStop's stock and...
In May 2020, shares of Hertz, a popular car renting company that filed for bankruptcy, increased tenfold right after 140,000 Robinhood traders added it to their portfolios. In July, a similar story happened to Kodak, with share prices soaring 2,000 %. Nevertheless, perhaps the most ...
In testimony during the hearing, Gill argued his original investment thesis was that “the market was underestimating the prospects of GameStop’s legacy business and overestimating the likelihood of bankruptcy,” and even told lawmakers he thought the stock was an “attractive investment at this pri...
Many of the big hedge funds could have avoided the damage if they had bought the stock back earlier, but they held on to the stock since they believed the company was headed for bankruptcy. Keith Gill (left) appears in a video on his Roaring Kitty YouTube channel. Actor Paul Dano record...
of the timeand grafts versions of real stories over its original characters like Jenny Campbell (America Ferrera) and Harmony Murphey (Talia Ryder). But at the core of the movie lie real events that changed the way middle-Americans think about finance, saved GameStop from bankruptcy, and spark...
Some hedge funds were caught out and suffered significant losses in closing short positions in affected securities. It is unclear to what extent any funds managed by UK-regulated managers have been materially impacted, let alone whether losses might reflect any failure of regulatory risk management ...