The hope for the little guy, who we all are, is that one day hell will come to breakfast for hedge fund instruments that are close to ruining baseball, the country and the globe. And at that moment, through an inexplicable force that could only be karma, everyone should work at Wendy’s so that they can experience what a minimum wage really is. The system is far too arranged for this estimate to ever come and they have already bought and paid for anyone who could have made this change, but there is still hope. Hope is a good thing, maybe the best thing, after all.
The coal mine canary will always be Mets, of course.
After all, the Mets were the only sports franchise they received Joan Collins special by Bernie Madoff, who gave sports fans a look at the sordid hedge fund world / Ponzi scheme and the chaos inside. The Mets have been surrounded for years by the losses of the Wilpon family in the Madoff business. It happens again? Probably not. But you can apologize to Mets fans for having a few flashbacks and looking for a blanket to feel safe.
If you haven’t seen it, and this is very unlikely, because it has been everywhere for the last few days, there has been something of a mini-uprising against one of those unsatisfactory hedge funds in recent days. Melvin Capital was taking GameStop shares out of the game – I bet the retailer will move on as it struggles, especially during the pandemic, to continue. I will not try to explain the whole concept of “short circuit”, because I, like you, tend to go cross-eyed with such things. Also, if you are interested, here is an excuse to find the scene The big short Where Margot Robbie explains it in a bathtub, which will be a much more pleasant experience for you. In the most cruel terms possible, practically, these rich idiots are trying to take advantage of the disappearance of a company.
Well, some Reddit users decided to retaliate and started buying GameStop shares. And buying it and buying it. Seeing how the price would go up and that’s exactly what Melvin Capital didn’t want, they were a bit boned. And it just got worse, because Elon Musk always makes things worse, and the whole thing has fed on itself in the last few days. The end of the game was that Melvin Capital came out on top of his skis worth $ 3 billion.
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And that’s where the new Mets owner, Steve Cohen, comes in.
The Cohen’s Point72 Asset Management Group is one of the few funds that have joined together to make Melvin $ 2.75 billion to keep him afloat and hopefully survive the push of the proletariat against them. He also took them out of their GameStop game (although some Reddit warriors are skeptical). Cohen is “only” in it for $ 750 million right now, but you know how these things can go. GameStop shares are currently trading at about $ 320 a share, about 16 times more than when they were on January 12, when they all started, and almost 50 percent higher just yesterday.
Cohen has already addressed this by calming the nerves of Mets fans, indicating that his business and baseball farms do not interfere.
And that’s probably true. $ 750 million is only a fraction of Cohen’s total value, and that’s not how it works, and he should be pretty sure. But it would be pretty great if he and the Mets weren’t. One of these days, these people have to lose and lose big. And who loses bigger than the Mets?