Mudrick Capital Management MP, the hedge fund that provided a much-needed lifeline to AMC Entertainment Holdings Inc. in December provided hundreds of millions of dollars in profits after the price rises of AMC’s shares last week.
According to a person familiar with the matter, the business in New York made $ 200 million in profit, mostly from its holdings in AMC debt.
Mudrick’s profits come from a combination of paper profits and realized trades, the person said.
Last week, AMC shares nearly tripled in value as the cinema chain’s share attracted the attention of individual investors who have popular Reddit forums repeating the dizzying march into shares of GameStop Corp.
Most of Mudrick Capital’s gains, however, are due to its holdings in the company’s bonds, which rose as the company’s share price rose.