Value investor Bill Miller told CNBC on Tuesday that one of his funds sold his GameStop holdings during the Reddit-fueled frenzy that began earlier this year.
“We had GameStop in our valuable product, and I think our cost was about $ 4 or something,” Miller said in an interview with The Exchange. “When it was in the $ 70s when we sold it, of course it went to $ 400.”
Shares of GameStop eventually retreated sharply from their January 28 high of $ 483 and at some point fell below $ 50 in February when the initial short print of the headline came to an end.
However, the stock remained volatile and in focus as the video game retailer announced steps in its digital transformation. GameStop shares fell more than 5% on Tuesday to about $ 155 apiece, bringing the company’s market capitalization to nearly $ 11 billion.
The share remains up to almost 730% annually and over the past 12 months by more than 2,600%. At this point last year, GameStop shares were trading below $ 5.
Miller, founder and chief investment officer of Miller Value Partners, said his business has shied away from GameStop and other so-called meme stocks, which are popular with investors active in online messaging.
“They are not important at the moment because they are in the grip of the Reddit crowd and you are not able to analyze it in the same way as you are able to do other things because the price dominates. the fundamentals, “says Miller, who runs a fund that has beaten the S&P 500 for 15 consecutive years while working at Legg Mason.
Miller also told CNBC he remains strong about bitcoin and said demand is still exceeding the supply of the world’s largest cryptocurrency by market value. “That’s all you really need to know, and that means it’s going higher,” he said.
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