News

Meet The Hedge Fund That Made A Killing On The Reddit-Fueled Short Squeeze

The unfortunate reality of Wall Street is that, sooner or later, we knew that hedge fund players would emerge who capitalized on the Reddit-fueled squeezes of the last two weeks. 

One such fund was Jason Mudrick’s hedge fund. Mudrick Capital Management  made almost $200 million, fueled by stakes in names that squeezed higher during the GameStop frenzy, according to BloombergHis fund made 9.8% in January, one of the best months since the fund’s inception. Most of its gains came from debt and equity options in AMC and volatility bets in GameStop. 

The fund has $3.1 billion under management and booked most of its gains last week. It also sold about $50 million worth of out of the money call options on AMC, the report says. Back in September, AMC had “signed a commitment letter with Mudrick Capital that called for the hedge fund to buy $100 million of new secured bonds that pay 15% cash or 17% deferred interest,” the report notes. 

MORE

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s