How do you explain sinister Hedge Funds such as Melvin Capital going bankrupt due to their short positions in GME
They didn't go bankrupt. They did have a big loss on their short of GME, but they covered that in JAN 2021 -- just a couple of days before the all-time high.
The problem for them was the "high water mark" for most hedge funds. If a fund is down, they have to come back to their previous highest valuation before the manager can take profits for himself.
The fund was down over 40% after closing out the GME short. They started making a comeback, but it was slow going. 2021 was still a bull market.
If they continued doing what they were doing, they would have hit the bear market in 2022, and since shorting was their specialty, they probably would have made a comeback. But they decided to close the fund instead. They did not go bankrupt, but they did close the fund.
The fund manager, Plotkin, did fine, though. He personally made over $1 billion during the past few years.
How do you explain cabal behemoth's such as Citadel saying that "Melvin Capital and Gabe Plotkin are some of the greatest traders of our time
Because those guys are best buds and used to work together.
They worked for Steve Cohen, of Point 72. He was slapped with insider trading, so he can never manage other people's money again. But he has plenty of his own, which he used to fund his fund. Plotkin (Melvin Capital) and the Citadel guy both worked for Cohen. They went out on their own, and Cohen had some of his money invested with Plotkin, which is why they bailed him out of this fuck up in 2021.
yet 6 months later Melvin goes bankrupt due to their GME short positions
That did not happen. You have bad info.
Melvin covered/closed their GME short in JAN 2021. The closed the fund in early 2022, but did not declare bankruptcy. They returned capital to investors.
They made huge profits prior to 2021, so I don't know if they were net up or down, as far as their investors were concerned.
Why has the Cabal Mainstream Media been telling normies for the last 18 months that GME is a failure, to sell your shares, and that the company will die?
That is the only decent point the pro-GME'ers have made.
I find it laughable how you oddly are defending a slimey cabal hedgefund. None the less…
1.) Hedgefunds do not close their funds because of “bear markets”. That’s nonsense.
2.) 40% losses on an entire fund, operating with billions in other peoples money, isn’t just some laughable thing that happens everyday. That is absolutely horrible. If your hedgefund is losing 40% of your investment, then your hedgefund is clearly taking major risks and fucking something up.
3.) Bankrupt, closing fund, whatever you want to call it. Why are you nit-picking word choice and semantics here to downplay the fact that Melvin was one of the firms naked short selling GME and lost billions of dollars due to their abusive naked short selling?
7.) Gabe Plotkin publicly discussed how their bread and butter was short selling. How in the hell do you blow away 40% of your massive fund in a bear market when your bread and butter is short selling? Unless you just so happened to be taking part in illegal naked short selling & cellar boxing, that went sideways and turned into an idiosyncratic risk?
8.) Why are you shilling for a scummy, Cabal hedgefund, that has helped drive American companies into the ground (cellar boxing), destroying countless jobs, for their own profit?
They didn't go bankrupt. They did have a big loss on their short of GME, but they covered that in JAN 2021 -- just a couple of days before the all-time high.
The problem for them was the "high water mark" for most hedge funds. If a fund is down, they have to come back to their previous highest valuation before the manager can take profits for himself.
The fund was down over 40% after closing out the GME short. They started making a comeback, but it was slow going. 2021 was still a bull market.
If they continued doing what they were doing, they would have hit the bear market in 2022, and since shorting was their specialty, they probably would have made a comeback. But they decided to close the fund instead. They did not go bankrupt, but they did close the fund.
The fund manager, Plotkin, did fine, though. He personally made over $1 billion during the past few years.
Because those guys are best buds and used to work together.
They worked for Steve Cohen, of Point 72. He was slapped with insider trading, so he can never manage other people's money again. But he has plenty of his own, which he used to fund his fund. Plotkin (Melvin Capital) and the Citadel guy both worked for Cohen. They went out on their own, and Cohen had some of his money invested with Plotkin, which is why they bailed him out of this fuck up in 2021.
That did not happen. You have bad info.
Melvin covered/closed their GME short in JAN 2021. The closed the fund in early 2022, but did not declare bankruptcy. They returned capital to investors.
They made huge profits prior to 2021, so I don't know if they were net up or down, as far as their investors were concerned.
That is the only decent point the pro-GME'ers have made.
I find it laughable how you oddly are defending a slimey cabal hedgefund. None the less…
1.) Hedgefunds do not close their funds because of “bear markets”. That’s nonsense.
2.) 40% losses on an entire fund, operating with billions in other peoples money, isn’t just some laughable thing that happens everyday. That is absolutely horrible. If your hedgefund is losing 40% of your investment, then your hedgefund is clearly taking major risks and fucking something up.
3.) Bankrupt, closing fund, whatever you want to call it. Why are you nit-picking word choice and semantics here to downplay the fact that Melvin was one of the firms naked short selling GME and lost billions of dollars due to their abusive naked short selling?
4.) In a letter to his investors, Gabe Plotkin literally says “I am sorry. I got this one wrong. I made a mistake. I apologize…” https://twitter.com/LJMoynihan/status/1518331429209395200?s=20&t=uq4jK-GF461gv-pL2tidoA
5.) Melvin Capital is under investigation by the DOJ for abusive short selling.
6.) Gabe Plotkin literally admitted in court that they had been shorting GME for the last 6 years. https://docs.house.gov/meetings/BA/BA00/20210218/111207/HHRG-117-BA00-Wstate-PlotkinG-20210218.pdf
7.) Gabe Plotkin publicly discussed how their bread and butter was short selling. How in the hell do you blow away 40% of your massive fund in a bear market when your bread and butter is short selling? Unless you just so happened to be taking part in illegal naked short selling & cellar boxing, that went sideways and turned into an idiosyncratic risk?
8.) Why are you shilling for a scummy, Cabal hedgefund, that has helped drive American companies into the ground (cellar boxing), destroying countless jobs, for their own profit?