Bloomberg
Reddit Day Trader Army meets fortunes of the super-rich
(Bloomberg) – A horde of traders on Reddit who find themselves committed to the establishment by hunting down heavily sold stocks is adding billions to the wealth of some of the world’s ultra-rich. Larry Chen, president and CEO of GSX Techedu saw his fortune rise by $ 4.5 billion on Wednesday, with the American depositary shares of the Beijing-based online tutoring company up 38%, raising his net worth to nearly $ 16 billion. AMC Entertainment Holdings Inc. while retail traders increased their shares, causing a 310% increase, even as the broader market fell. It also boosted hedge funds like Mudrick Capital, which owned 4.6 million shares in the cinema operator on January 4. Chewy Inc. co-founder Ryan Cohen added about $ 1.6 billion with his stake in GameStop Corp. which has increased by more than 1,500% this year through Wednesday. The other investor Donald Foss, founder of the subprime auto lender Credit Acceptance Corp., now has a stake of more than $ 1 billion, according to the Bloomberg Billionaires Index. Even the head of Tootsie Roll Industries Inc. benefited, with CEO Ellen Gordon’s fortune rising $ 200 million as the candy maker’s shares hit a record high. Metéoric RallyDay traders have been piling up on previously rejected quotes, favored by short sellers in recent sessions, taking them to record levels. GameStop’s meteoric rise has already worn out some institutional investors, with Melvin Capital closing its short position on Wednesday. The search for heavily sold shares is being led by the Reddit WallStreetBets forum, which has about 2.8 million members. Some of the most outspoken took an activist stance, portraying their campaign as a stance against social problems like financial inequality and generational injustice. Gordon owns just over half of the common shares of Tootsie Roll Industries and 81% of its B shares, according to the company’s files. Her stake in the maker of Tootsie Pops, Junior Mints and Dubble Bubble Gum, which she owns directly and on behalf of other family members, is now worth more than $ 1.8 billion. Cohen announced an investment in GameStop in August. In December, he bought 9 million shares in the retailer for a total cost of $ 76 million and now holds a stake of almost $ 3 billion. GameStop shares rose 121% to $ 326.38 at 10:50 am in New York, after rising up to 140% at the opening, leading to at least two volatility stops. Jianlin, founder of the privately held conglomerate Dalian Wanda Group, now has a stake of around $ 700 million in AMC, which has risen to $ 20.36 in New York trade, the highest since September 2018. Jianlin has a net worth of $ 13.6 billion, according to the Bloomberg Billionaires Index. (Updates with Larry Chen in the second paragraph.) For more articles like this, visit us at bloomberg.comSubscribe now to stay on top of the most trusted business news source. © 2021 Bloomberg LP