The South Korean hedge fund that made a bold bet on GameStop Corp. almost a year ago is becoming less optimistic about the stocks of the US video game retailer after a seemingly endless recovery that missed many short sellers.
Kim Doo-yong, CEO of Must Asset Management, said the high stock volatility is more than ten times greater since its The latest interview with Bloomberg in March 2020 is taking its less optimistic view.
The Seoul-based hedge fund, which has 602 billion won ($ 546 million) in assets under management, had a 4.7% stake in GameStop in April 2020, according to Bloomberg Contact info based on an archive. This made the Korean fund one of the largest investors in the company based in Grapevine, Texas.
Kim declined to comment on the fund’s current participation in listed stocks in the United States, a favorite of retail investors who became increasingly influential in the markets during the pandemic. GameStop’s shares skyrocketed in a wave of short sales and day trading after Ryan Cohen, the activist investor and co-founder of pet retailer Chewy Inc., joined his board on January 11th.
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“We became less optimistic and more neutral at GameStop,” Kim said in an interview with Bloomberg on Monday. “This action will continue to be very volatile and unpredictable in the short term.”
Swimming against a low tide of analysts ‘opinions, Kim told Bloomberg in March last year that GameStop is “the only place” where potential customers can experience the companies’ games in person. He still believes in the company.
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“We are still very optimistic about the new GameStop management,” said Kim. “We believe that Ryan Cohen and his team can repeat the success they have achieved on Chewy.com.”
Kim said he recently placed a bet on another American company. The fund increased its holdings in US listed stocks Kaleyra Inc and now has a 5.2% stake in the software company.