You probably wouldn’t expect GameStop’s recent frantic rise (GME) – Get the report stock to have any impact on the New York Mets baseball team.
But Mets fans are worried because owner Steve Cohen’s Point72 hedge fund has invested in Melvin Capital, a hedge fund that had a huge short position in GameStop. A source told The New York Times that the Cohen hedge fund has fallen 15 percent this year.
Of course, this is not a big move, given the goal of GameStop’s dizzying rise – its stock has grown by more than 650% in the last month – and the size of Cohen’s wealth. It was worth $ 14.6 billion as of Thursday, according to Forbes.
Citadel and Point72 inject $ 2.75 billion into Melvin to keep it afloat, with $ 750 million coming from Point72. Melvin managed $ 1 billion of his money before that, sources told The Times.
Mets fans asked Cohen and asked if Melvin’s disappointment would affect the Mets.
As said a fan, “Does this Gamestop business affect Mets salary? I mean, that’s the main story of it all. ”
Cohen’s answer: “Why would one have something to do with the other.”
Fans’ response: “Because both companies have the same sugar daddy!”
As for GameStop, the shares of the video game retailer continued to hit on Thursday, hitting, rising and then sinking again after trading platforms such as Robinhood limited transactions in shares.
AMC Entertainment (I HAVE C) – Get the report and Bed Bath & Beyond (BBBY) – Get the report – two other sharply shortened stocks – fell sharply on Thursday.
The activity was largely triggered by the Reddit-based WallStreetBets chat room.