Bloomberg
Reddit Day Trader Army meets fortunes of the super-rich
(Bloomberg) – A horde of traders on Reddit who find themselves trapped in the establishment when 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 $ 4.2 billion on Wednesday, with the American depositary shares of the Beijing-based online tutoring company up 36%, raising its net worth to $ 15, 6 billion on the Bloomberg Billionaires Index. Chinese billionaire Wang Jianlin’s wealth has increased by $ 773 million through his stake in AMC Entertainment Holdings Inc. A flood of retail traders has caused stocks to skyrocket up to 310%, even as the overall market crashed. Hedge funds like Mudrick Capital, which owned 4.6 million shares in the cinema operator on January 4, also had a boost. Chewy Inc. co-founder Ryan Cohen added about $ 1.8 billion with his stake in GameStop Corp. game retailer that grew more than 1,700% this year. The other investor Donald Foss, founder of the subprime auto lender Credit Acceptance Corp., now holds a stake of about $ 1.2 billion, according to the Bloomberg index. Even the head of Tootsie Roll Industries Inc. benefited, with CEO Ellen Gordon’s fortune rising $ 185 million as the confectioner’s stock rose to a record high, while National Beverage Corp. founder Nick Caporella saw his net worth jump from $ 1.8 billion to $ 6.8 billion, as the shares of the sparkling water maker LaCroix rose 40%. by short sellers in recent sessions, taking them to record highs. 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 $ 1.8 billion. Cohen announced an investment in GameStop in August. In December, he bought 9 million shares of the retailer for a total cost of $ 76 million and now holds a stake of about $ 3.1 billion. GameStop’s shares rose 135% to a record $ 347.51 in New York after triggering three volatility stops. Wang, the founder of the privately held conglomerate Dalian Wanda Group, now holds an approximately $ 1 billion stake in AMC, which has risen to $ 19.90 in New York trade, the highest since October 2018. Wang has a net worth of $ 14.4 billion, according to the Bloomberg Billionaires Index. (Earnings updates starting 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