Since the beginning of the year, hedge funds have experienced historic losses when attempting to short equities. The most astute hedge fund managers, who recognize how market dynamics are shifting, have taken advantage of the scenario. Hedge funds have been hit hard by big stock surges in recent months. One of the year’s largest stock rises was fueled by Redditors. Hedge funds are closely monitoring Reddit boards to stay informed about these stocks. Investors can use meme stocks to see which sectors of the market are likely to see higher volatility in the coming weeks. Short-selling attempts were unsuccessful against AMC Entertainment Holdings, Inc., a Kansas-based movie theater company, and GameStop Corp. In the struggle between hedge funds and retail investors over meme stocks, hedge funds are on the losing end.
Here is Insider Monkey’s list of the 10 hedge funds that profited from Reddit’s meme stock craze. Silver Lake Partners is ranked tenth. It invests in technology-related companies and has a portfolio worth more than $10 billion. The AMC Entertainment Holdings, Inc. short squeeze netted Silver Lake about $113 million. Engineers Gate Manager, based in New York, is a hedge fund. At the end of 2020, the fund made a significant bet on GameStop Corp. Greg Eisner manages the fund, which has a portfolio worth more than $2 billion. Landscape Capital Management is ranked eighth. The fund was one of the few to increase its holdings in GameStop Corp. in the fourth quarter of 2020, just weeks before the stock hit a new high. Shellback Capital, a hedge fund with assets in the services and industrial goods markets, has a portfolio worth more than $1.6 billion. In late 2020, the fund purchased 200,000 shares of GameStop Corp. for roughly $3.7 million. Odey Asset Management is a hedge fund established in London with a portfolio worth over $357 million. On the list of 10 hedge funds that benefited from Reddit’s meme stock mania, it ranks sixth. In the first two months of this year, the Odey European Fund increased by 22%. For more details, click 10 Hedge Funds that Profited from Reddit’s Meme Stock Craze.
