You probably wouldn’t expect the recent frantic increase at GameStop’s (GME) – Get report actions to have any impact on the New York Mets baseball team.
But Mets fans are concerned that owner Steve Cohen’s Point72 hedge fund has invested in Melvin Capital, a hedge fund that had a huge short position on GameStop. A source told The New York Times that Cohen’s hedge fund has dropped 15% this year.
Of course, that’s not a big change, given the scope of GameStop’s dizzying rise – its shares jumped more than 650% last month – and the size of Cohen’s wealth. It was worth $ 14.6 billion on Thursday, according to Forbes.
Citadel and Point72 are injecting $ 2.75 billion into Melvin to help keep him afloat, with $ 750 million coming from Point72. Melvin managed $ 1 billion of his money before that, sources told The Times.
Mets fans questioned Cohen and offered their thoughts on whether the Melvin disaster would affect Mets.
Like a fan put, “Is this Gamestop business affecting the Mets payroll? I mean, this is the main story of all of this. “
Cohen’s reply: “Why would one have something to do with the other.”
The fan’s response: “Because both companies have the same daddy!”
As for GameStop, the video game retailer’s stock continued to whip on Thursday, falling, rising and then sinking again after trading platforms like Robinhood limited stock transactions.
AMC Entertainment (AMC) – Get report and Bed Bath & Beyond (BBBY) – Get report – two other strongly sold shares – fell sharply on Thursday.
The activity was triggered largely by the chat room based on Reddit WallStreetBets.