The South Korean hedge fund that made a bold bet on GameStop Corp. almost a year ago he became less optimistic about the stock of the US video game retailer following a seemingly endless rally that had many short sellers were wrong.
Kim Doo-yong, chief executive of Must Asset Management, said high stock volatility and more than tenfold growth since the last interview with Bloomberg in March 2020 makes his vision less rosy.
The Seoul-based hedge fund, which has 602 billion won ($ 546 million) in assets under management, had a 4.7% stake in GameStop as of April 2020, according to Date Bloomberg based on a deposit. This made the Korean fund one of the largest investors in the Grapevine, Texas company.
Kim declined to comment on the current ownership of the US-listed equity fund, a favorite of retail investors who became increasingly influential in markets during the pandemic. GameStop shares rose on a short trading and day trading after Ryan Cohen, activist investor and online pet retailer Chewy Inc., co-founder, joined its board of directors on January 11th.
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“We became less bullish and became more neutral in GameStop,” Kim said in an interview with Bloomberg on Monday. “This stock will continue to be very volatile and unpredictable in the short term.”
Swimming against a wave of analysts, Kim told Bloomberg in March last year that GameStop is “the only place” where potential customers can personally try out corporate games. He still believes in company.
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“We are still very positive about the new management at GameStop,” said Kim. “We believe that Ryan Cohen and his team can repeat the success they have achieved at Chewy.com.”
Kim said he recently made a bet on another American company. The fund has increased its holdings in the US lists Kaleyra Inc still has a 5.2% stake in the software company.