You probably would not expect the recent fierce increase in GameStops (GME) – Get report stock to have any impact on the New York Mets baseball team.
But Mets fans are worried because owner Steve Cohen’s Point72 hedge fund has invested in Melvin Capital, a hedge fund that held a large short position in GameStop. A source told The New York Times that Cohen’s hedge fund has fallen 15% this year.
This, of course, is not a very big step, given the scale of GameStop’s dizzying rise – the stock has risen more than 650% in the past month – and the magnitude of Cohen’s wealth. According to Forbes, he is worth $ 14.6 billion as of Thursday.
Citadel and Point72 are injecting $ 2.75 billion into Melvin to help keep it, with $ 750 million coming from Point72. Melvin previously managed $ 1 billion of his money, sources told The Times.
Mets fans questioned Cohen and expressed their thoughts on whether the Melvin debacle would affect the Mets.
As a fan of this set, “Is it the Gamestop business that influences the Mets payroll? I mean this is the main story in it all. ”
Cohen’s answer: “Why would the one have anything to do with the other?”
The fan’s response: “Because both businesses have the same sugar daddy!”
As for GameStop, shares of the video game retailer continued to whip, tumble, rise and then sink again on Thursday after trading platforms such as Robinhood restricted transactions in the stock.
AMC Entertainment (AMC) – Get report and Bed Bath & Beyond (BBBY) – Get report – two other severe short circuits – fell sharply on Thursday.
The activity was largely fueled by the Reddit-based chat room WallStreetBets.