Mudrick Capital Management LP, the hedge fund that provided a much-needed lifeline for AMC Entertainment Holdings Inc. in December, is sitting on hundreds of millions of dollars in earnings after AMC’s share price recovery last week.
The New York-based company made a profit of $ 200 million, mainly from its equity interests in AMC, according to a person familiar with the matter.
Mudrick’s gains stem from a combination of paper gains and trades, the person said.
Last week, the value of AMC’s shares nearly tripled when the stock of the cinema chain drew the attention of individual investors who crowded popular Reddit forums looking to repeat the dizzying high seen in GameStop Corp’s shares.
Most of Mudrick Capital’s earnings, however, come from its holdings in the company’s securities, which rose as the company’s share price increased.