News

Hedge Funds

Reuters | Equities.com |

Wall Street hedge fund managers, the chief executives of Robinhood and Reddit, and a YouTube streamer known as Roaring Kitty face a grilling on Thursday afternoon from U.S. lawmakers over the Reddit rally in shares of GameStop Corp.

Some of Wall Street’s most powerful players, including billionaire Republican mega-donor and Citadel CEO Ken Griffin, will make rare public statements about their business practices during the Congressional hearing on how Reddit users trading on retail platforms banded together to squeeze hedge funds that had bet against shares of the video game retailer and other companies.


Kimberly Redmond | Equities.com |

Tribune Publishing Co (Nasdaq: TPCO), one of the country’s largest newspaper chains, will be fully acquired by hedge fund Alden Global Capital in a deal that values the company at $630 million.

Under the terms announced Tuesday, Alden will acquire the remaining shares it doesn't already own of Tribune Publishing for $17.25 apiece and take the company private. Tribune owns newspapers including the New York Daily News, Chicago Tribune, Sun Sentinel and Orlando Sentinel.


Reuters | Equities.com |

GameStop Corp shares more than halved in value on Tuesday and silver prices retreated as the Reddit-driven trading frenzy that roiled stock and commodity markets appeared to fizzle, at least for now.

The videogame retailer’s shares, whose wild gyrations have made or lost billions of dollars for hedge funds and other investors in recent weeks, closed down 60% at $90. They are now worth less than a fifth of their high of $483 last week.


Reuters | Equities.com |

U.S. hedge funds last week bought and sold the most stock in more than 10 years amid wild swings in GameStop Corp shares that many had bet against, but their market exposure to stocks is still near record levels, according to an analysis by Goldman Sachs Inc.

“According to Goldman Sachs Prime Services, this week represented the largest active hedge fund de-grossing since February 2009. Funds in their coverage sold long positions and covered shorts i...


Reuters | Equities.com |

Three BlackBerry executives, including the chief financial officer, sold $1.7 million of the telecoms technology firm’s stock in the early days of this month’s meteoric share price rise, filings with securities regulators show.

BlackBerry and other heavily shorted stocks have soared in the past few days as traders organizing on social media platforms such as Reddit took on the hedge funds making bets against them. The stock sales represent one of the first examples of company executives cashing out on the frenzy.


Reuters | Equities.com |

Shares of GameStop and AMC Entertainment Holdings soared for a fourth day running on Wednesday, forcing hedge funds to retreat from heavy losses and sparking calls for scrutiny of a social media-driven trading frenzy.

Short-seller Citron, a target for some of the individual traders who have helped drive huge gains for a number of niche Wall Street stocks in the past week, said in a video post it had abandoned its bet on GameStop shares falling.

With commentators and lawyers calling for scrutiny of the moves, Nasdaq chief Adena Friedman said exchanges and regulators needed to pay attention to the potential for “pump and dump” schemes driven by chatter on social media.


Reuters | Equities.com |

The world’s 20 best-performing hedge funds earned $63.5 billion for clients in 2020, setting a record for the last 10 years during a chaotic time when technology oriented stocks led a dramatic rebound from a pandemic induced sell-off, LCH Investments data show.

As a group, the most successful managers earned half of the $127 billion that all hedge funds made last year, LCH Investments, a fund of funds firm that tracks returns and is part of the Edmond de Rothschild group, reported.


Reuters | Equities.com |

Elliott Management, which last year took a $3.2 billion stake in AT&T T.N and pushed the company to sell some assets, has itself exited the telecommunications and media company, according to a regulatory filing on Monday.

The New York-based hedge fund liquidated its investment when it sold 5 million shares during the quarter that ended Sept. 30. It had first bought into the stock during the third quarter 2019, according to another filing.

Investment companies are required to say what U.S. stocks they own at the end of each quarter. While these filings are made with a delay, they often shed light on investment trends that are closely watched by other investors.