You probably won’t expect the recent frantic rise of GameStop (GME) – Get the report actions to have any impact on the New York Mets baseball team.
But Mets fans are worried that owner Steve Cohen’s Point72 hedge fund has invested in Melvin Capital, a hedge fund that had a huge short position in GameStop. A source told The New York Times that Cohen’s hedge fund has fallen 15% this year.
Of course, this is not a very big move given the scope of GameStop’s dizzying rise (its shares have jumped more than 650% in the last month) and the size of Cohen’s wealth. It is worth $ 14.6 billion as of Thursday, according to Forbes.
Citadel and Point72 inject $ 2.75 million into Melvin to help him stay afloat, with $ 750 million coming from Point72. Melvin previously managed the $ 1 billion, sources told the Times.
Mets fans asked Cohen and commented on whether Melvin’s debacle would affect the Mets.
How said a fan, “Does this Gamestop business affect the Mets’ payroll? I mean that’s the main story of it all.”
Cohen’s answer: “Why would one have anything to do with the other?”
Fan response: “Because both businesses have the same sugar daddy!”
As for GameStop, the shares of the video game retailer continued to hit on Thursday, falling, rising and then sinking again after trading platforms like Robinhood, which limited stock transactions.
AMC Entertainment (AMC) – Get the report and Bed Bath & Beyond (BBBY) – Get the report – two other very short actions – fell sharply on Thursday.
The activity was largely sparked by Reddit’s WallStreetBets chat room.