Gamestop Corporation (NYSE: GME), (AMC) – Not just GameStop, the goal of WallStreetBets, Melvin Capital, closed all public short positions in the first quarter
Hedge fund Melvin Capital Management LP, which was at the heart of the GameStop Corp. (NYSE: GME) a short squeeze frenzy earlier this year, closed all of its public shorts in the first quarter.
What happened: Melvin Capital liquidated all of its listed put positions during the first quarter, according to a filing with the Securities and Exchange Commission.
These include in particular short positions in GameStop and entertainment company based in New York AMC Networks Inc. (NASDAQ: AMCX), not to be confused with a movie theater chain of the same name that was a short target of squeeze earlier this year.
The company also closed its put options in several other companies, including Viatris Inc. (NASDAQ: VTRS), Invesco Solar ETF (NYSE: TAN) and Cryoport Inc. (NASDAQ: CYRX), during the quarter.
Melvin admitted at the end of January to have closed his short position GameStop.
See also: GameStop, is AMC about to pull itself together?
Why is this important: Amateur traders belonging to Reddit investor forum r / WallStreetBets bid on heavily sold stocks such as GameStop and the Kansas-based movie chain AMC Entertainment Inc. (NYSE: AMC) to create a short push earlier this year. This forced bearish investors, including Melvin Capital and other hedge funds, to unwind their bets against equities, triggering a rally in January.
It was reported at the time that Melvin Capital had lost 53% of its investments in January. The company ended the month with more than $ 8 billion in assets under management, having started the year with around $ 12.5 billion.
Melvin Capital’s losses became so severe that the hedge fund received $ 2.75 billion in investments from hedge funds Citadel LLC and Cohen’s Point72 Asset Management.
Retail investors continue to take losses from short sellers, who reportedly lost nearly $ 930 million recently over five trading days following the latest wave of GameStop and AMC Entertainment, according to data from the Ortex analysis company.
See also: Comment to Buy GameStop (GME) Stock
Price action: GameStop shares closed down 6.6% in Wednesday’s trading session at $ 168.83 and are still down nearly 0.5% in the after-hours session at 168.00 $.
AMC Entertainment shares closed 9.9% lower in the regular trading session at $ 12.64 and were down another 1.1% in the after-hours session at $ 12.50.
Read more: GameStop Bet Helps Church of Jesus Christ of Latter-day Saints to Earn 907% in 3 Months
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