A real-life buzz on GameStop between Wall Street and Main Street erupted on Thursday between hedge fund billionaire Steve Cohen and boy with day poster Dave Portnoy.
It started back and forth when Portnoy, the founder of the blogging site Barstool Sports, attacked Cohen, the billionaire owner of Mets, for trading restrictions on apps like Robinhood, which hurt novice investors behind the spectacular rally of small shares, such as would be Gamestop.
“PRISON TIME,” Portnoy said in a tweet about Cohen, the founder of Point72 Capital, and the Citadel, a hedge fund run by billionaire Ken Griffin.
“Demons and Republicans have not agreed on an issue so far. Such are today’s blatant, illegal, incomprehensible events. It also shows how untouched @RobinhoodApp @ StevenACohen2C Citadel Point72 everyone thinks they are. Fines are not enough. Prison or bust. ”
Portnoy commented while linking to a news article that reported lawmakers’ anger over Robinhood’s trading restrictions that banned users from buying certain shares, including GameStop.
Cohen rushed, “Hey Dave, what’s your meat with me? I’m just trying to make a living just like you. I’m glad to take this offline. ”
“I do not go offline. There are shady things happening.
Dave Portnoy
“I do not go offline. It’s shady going on there, Portnoy said.
He then accused Cohen of contributing to controversial restrictions on trading applications such as Robinhood, which affects novice investors behind the spectacular rally of small shares such as Gamestop. Hedge funds lost billions in the rally by shortening those stocks, including Cohen’s Point72, which fell more than 10 percent.
“I think you had a strong hand in today’s criminal events to save hedge funds at the expense of ordinary people. Do you unequivocally deny this? “Portnoy said.
He cited as evidence Cohen’s recent efforts to save fellow fundraiser Melvin Capital Management from losses through betting on stocks such as GameStop, known as “shorting.”
Cohen’s Point72 Asset Management and Griffin City have invested $ 2.75 billion in Melvin, led by Cohen’s former protégé Gabe Plotkin. The citadel also executes commercial orders on behalf of Robinood.
“You saved Melvin because you are a boy with the Citadel,” he replied.
Cohen defended himself by saying, “What are you talking about? I unequivocally deny that accusation. I had nothing to do with what happened today …
Portnoy continued: “Then, in your professional choice, why was the trading stopped? $ amc $ gme $ nok $ sndl $ nakd ? Would I be very curious? ”
“Good question,” Cohen shot back. “These questions should go to Robin Hood, etc. I’m a merchant just like you. When you find out, let me. ”
“I think brokers should make a statement. It seems reasonable, “he added.
The two men then seemed to repair with Portnoy applauding Cohen for speaking. “At least you talk and try to answer. That is appreciated. ”
But elsewhere, the dispute between Main Street and Wall Street continued to boil over with much of the outrage at the Citadel, which is the largest buyer of Robinhood’s order flow.
Citadel’s agreement with Robinhood, which forces it to pay the app to trade with users, has long led to concerns on Wall Street that this gives the hedge fund part of the business a special market perspective – something Citadel has denied. a lot.
The company insisted on Thursday that it keeps its securities trading business and hedging funds separate – and said it had nothing to do with Robinhood’s trading restrictions, which reduced GameStop shares by 44%.
“Citadel Securities has not instructed or otherwise instructed any brokerage firm to stop, suspend or limit trading or otherwise refuse to do business,” the company said in a statement.
That didn’t stop the angry investors from getting upset.
“We have just seen Ken Griffin interfere with the markets to limit losses. This was a robbery. We need to investigate, “@chitriman wrote on Twitter.
“This is actually the Fortress through which Robinhood passes, they block it [GamseStop], AMC and the others “, wrote a Reddit user. “Robinhood is also a victim of bigger fish.”