Steve Cohen became the last victim of the “Reddit Rally”.
The hedge fund Point72 Capital, owned by billionaire owner of the Mets, has fallen more than 10 percent since the beginning of the year because of the unprecedented tightening of stocks like GameStop and AMC Entertainment, industry sources told The Post.
This creates a considerable hole for Cohen to leave in the remaining 11 months of 2021. However, fans of the Amazins should not be concerned that their beloved new boss is suffering from a Flushing curse.
Sources told the Post that most of Cohen’s pain comes from his investment in Melvin Capital, a fund run by his former protégé Gabe Plotkin, who became the first high-profile victim of the social media-fueled market revolt against funds hedge funds who earn billions by selling shares
Plotkin had a 30% drop on Tuesday when Cohen and his fellow Citadel hedge fund boss Ken Griffin acted to save him with an emergency $ 2.75 billion cash infusion.
“If he’s rescuing Plotkin, I’m not too concerned about him,” said a fellow hedge fund manager about Cohen. “Plotkin did not have adequate risk management for something he could not have predicted and Steve was hit by a guy who earned him billions two years ago. It sucks, but he’ll get over it. “
As of Wednesday, Cohen had a relatively small stake of 26,878 shares in GameStop, according to data from Bloomberg.
Point72 returned about 17 percent in 2020, but the battle with hellish retail merchants to bring down billionaire hedge fund managers from their ivory tower seems far from over.
Users of the Reddit board “WallStreetBets” openly targeted Cohen and his fund on the platform with a provocation: “Mets owners and losing all their money in the stock market. Name a more iconic duo. “
Cohen seemed to publicly attack his antagonists as the grip tightened his grip.
“Rough crowd on Twitter tonight,” he tweeted Tuesday night. “Hey, the jockeys keep bringing.