Hedge-Fund Titans Lose Billions to Reddit Traders Running Amok

Bloomberg2021-01-28

Follow Bloomberg onTelegramfor all the investment news and analysis you need. For once,Main Streetis beating Wall Street. In a matter of weeks, two hedge-fund legends -- Steve Cohen and Dan Sundheim ...

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Comments

sakam0t0
2021-01-30
sakam0t0
Ok
MicroStrategist
2021-01-29
MicroStrategist
Power to the people. Retailers 1, Hedge Funds 0. Round 1 [笑哭]
SSVC
2021-01-29
SSVC
Nice
Hamsterwan
2021-01-29
Hamsterwan
Lol
NicholasL
2021-01-29
NicholasL
Nice
- 社区成长助手:
  终于等到了您的初发帖[比心][比心]发帖时关联相关股票或者相关话题，可以获得更多曝光哦～如果您想创作优质文章，请查看老虎社区创作指引
Euphy
2021-01-29
Euphy
Well

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHedge-Fund Titans Lose Billions to Reddit Traders Running Amok\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-01-28 14:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.bloomberg.com/asia><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Follow Bloomberg onTelegramfor all the investment news and analysis you need.\nFor once,Main Streetis beating Wall Street.\nIn a matter of weeks, two hedge-fund legends -- Steve Cohen and Dan Sundheim ...</p>\n\n<a href=\"https://www.bloomberg.com/asia\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":null,"symbol_name":null,"start_time":0,"source_url":"https://www.bloomberg.com/asia","article_id":"1108385164","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1108385164","pubTimestamp":1611816351,"sourceInfo":{"source_id":"lsy1584095487587","name":"Bloomberg"},"weMediaInfo":null,"summary":"Follow Bloomberg onTelegramfor all the investment news and analysis you need.\nFor once,Main Streetis","collect":0,"end_time":0,"defaultTopTitle":"bloomberg.com","property":[],"viewcount":null,"language":"en","relate_stocks":{},"translate_title":"Reddit交易员横行霸道，对冲基金巨头损失数十亿美元","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{},"content_text":"Follow Bloomberg onTelegramfor all the investment news and analysis you need.\nFor once,Main Streetis beating Wall Street.\nIn a matter of weeks, two hedge-fund legends -- Steve Cohen and Dan Sundheim -- have suffered bruising losses as amateur traders banded together to take on some of the world’s most sophisticated investors. In Cohen’s case, he and Ken Griffin ended up rushing to the aid of a third, Gabe Plotkin, whose firm was getting beaten down.\nDriven by the frenzied trading inGameStop Corp.and other stocks that hedge funds have bet against, the losses suffered over the past few days would rank among the worst in some of these money managers’ storied careers. Cohen’sPoint72 Asset Managementhas declined 10% to 15% so far this month, while Sundheim’sD1 Capital Partners, one of last year’s top-performing funds, is down about 20%.Melvin Capital, Plotkin’s firm, had lost 30% through Friday.\nIt’s a humbling turnaround for the hedge fund titans, who in 2020 staged a comeback by pouncing on the wild markets caused by the Covid-19 pandemic. But that crisis helped push thousands if not millions of retail traders into the U.S. stock market, creating a new force that for now the professionals seem powerless to combat.\nTheir assailants are a collection of traders using Reddit’s wallstreetbets thread to coordinate their attacks, which seem to be focused on stocks known for being held short by hedge funds. The most prominent is GameStop, the beleaguered brick-and-mortar retailer that’s soared more than 1,700% this month, but other targets include AMC Entertainment Holdings Inc. and Bed Bath & Beyond Inc.\nRead more: GameStop Frenzy Reaches Biden and Powell as Hedge Funds Squeezed\nThe pain is likely spreading across the hedge fund industry, with rumors swirling among traders of heavy losses at multiple firms. The Goldman Sachs Hedge Industry VIP ETF, which tracks hedge funds’ most-popular stocks, tumbled 4.3% on Wednesday for its worst day since September.\nFund managers covered their money-losing short sales while trimming bullish bets for a fourth straight session Tuesday. Over that stretch, their total outflows from the market reached the highest level since October 2014, data compiled by Goldman’s prime-brokerage unit show.\nD1, which was founded in 2018 and had about $20 billion in assets at the start of the year, is buffeted to some degree from the attacks because private companies account for roughly a third of its holdings, and the firm has been reducing its exposure, according to people familiar with the matter. The fund is closed to new investments and has no plans to open for additional capital, one of the people said, asking not to be named because such decisions are confidential.\nD1’s loss, described by people briefed on the situation, contrasts with a 60% gain for Sundheim, 43, during last year’s pandemic turmoil.\nMelvin on Monday took an unheard-of cash infusion from its peers, receiving $2 billion from Griffin, his partners and the hedge funds he runs at Citadel, and $750 million from his former boss, Cohen.\nRead more: Reddit Crowd Bludgeons Melvin Capital in Warning to Industry\n“The social media posts about Melvin Capital going bankrupt are categorically false,” a representative said. “Melvin Capital is focused on generating high-quality, risk-adjusted returns for our investors, and we are appreciative of their support.”\nUntil this year, Plotkin, 42, had one of the best track records among hedge fund stock pickers. He’d worked for Cohen for eight years and had been one of his biggest money makers before leaving to form Melvin. He’s posted an annualized return of 30% since opening, ending last year up more than 50%, according to an investor.\nAnother fund, the $3.5 billion Maplelane Capital,lost about33% this month through Tuesday in part because of a short position on GameStop, according to investors.\nRepresentatives for Point72, D1 and Maplelane all declined to comment.\nThe struggles at some of the biggest hedge funds may have contributed to Wednesday’s 2.6% drop in the S&P 500, its worst decline since October. One theory behind the decline is that funds are selling long bets to get the cash they need to cover their shorts.\nCohen, 64, is perhaps the best-known victim of this year’s turmoil so far. The new owner of the New York Mets, whose fund gained 16% in 2020, has become a national figure after beating competition from Jennifer Lopez and Alex Rodriguez to buy the ball club.Late Tuesday, Cohen broke his usual habit of only tweeting about the Mets. “Hey stock jockeys keep bringing it,” he wrote on the social media platform.\n— With assistance by David Gillen","kind":null,"is_publish_news":false,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":312042921,"gmtCreate":1611980162363,"gmtModify":1704866782132,"author":{"id":"3568717943755464","authorId":"3568717943755464","name":"sakam0t0","avatar":"https://static.tigerbbs.com/9ee28596ffff09e873a45cf00c767dba","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3568717943755464","authorIdStr":"3568717943755464"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/312042921","repostId":1108385164,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":318454941,"gmtCreate":1611887134983,"gmtModify":1704865243264,"author":{"id":"3561713422683896","authorId":"3561713422683896","name":"MicroStrategist","avatar":"https://community-static.tradeup.com/news/a1f9b1071e75ec59572f7ba9bbb0a4ed","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":2,"crmLevelSwitch":1,"idStr":"3561713422683896","authorIdStr":"3561713422683896"},"htmlText":"Power to the people. 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