In this battle of retail investors shorting financial giants, many short-selling institutions left the market badly wounded, while some Wall Street bigwigs profited from the situation.
The retailer’s small army gathered its strength through the online forum Reddit, and hailed stocks such as GameStop to beat back the big Wall Street short sellers in what was described as a “populist market uprising”. But in this battle of retail investors shorting the financial giants, not all Wall Street giants have been fought to the point of surrender, and there are still some companies that are watching from the sidelines, even benefiting from the soaring value of their holdings, or lending their shares to short sellers for profit.
Reuters reported that Larry Harris, the former chief economist of the SEC, said that many investors have not yet taken profits, and the retail investors who started too late, the dream of getting rich overnight will be destroyed, but at this moment, the traditional investors who have long held GameStop shares must be happy, “the long term investment institutions are the biggest winners”.
As the net army of retail investors to grab into the legal person significantly shorted the stock, pushing up the video game retailer GameStop, the chain of cinemas AMC and cell phone manufacturer BlackBerry (BlackBerry) shares, last week there was a surprising rise, short these stocks of risk aversion fund large investors were forced to close their positions, losses amounted to billions of dollars.
However, this is great news for some funds. For example, according to recently revealed documents, Fidelity Low-Priced Stock Fund (Fidelity Low-Priced Stock Fund) holds 2 million shares of GameStop, based on the stock’s intraday high of $482.95 on Thursday (28), the fund’s holdings are worth nearly $1 billion; these shares were worth only about $3.3 million at the beginning of January, The shares were worth about $33 million at the beginning of January.
At the same Time, the asset management giant that lent the short-seller the securities may have made a killing. Such activity generated $7.66 billion in revenue worldwide last year, according to DataLend. BlackRock, the world’s largest asset manager, earned record revenue from lending last year.
The well-known U.S. private equity fund Silver Lake (Silver Lake) is also one of the winners, as AMC shares jumped 301% last Wednesday (27), the company converted $ 600 million of convertible bonds into AMC shares.
Brokerage firms and market makers were equally jubilant. Charles Schwab, the nation’s largest online brokerage firm, Citadel Securities and others have profited from the explosion in volume, with 19.58 billion shares traded on the American Stock Exchange on Thursday (28), up from an average of 14.86 billion shares traded over the last 20 trading days.
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