This hedge fund invested in GameStop — it’s now closing after suffering losses: reports

A hedge fund that made losses betting against GameStop GME, +6.11% in the first meme-stock rally has been forced to shut down, according to reports.

London-based White Square Capital suffered double-digit percent losses in January from its investment in the U.S. videogame retailer, and has now written to investors to warn that it will shut its main fund and return money back, The Financial Times reported, citing sources.White Square, which was founded by Florian Kronawitter, a former trader at Paulson & Co, had managed up to $440 million in assets. It was approached for a comment by email.

The term meme stock was coined after individual investors targeted companies on social media, which in some cases saw shares dramatically rise. This caused some hedge funds with short positions — where a stock is sold first with the intention of it being bought back later in the hope a profit can be made from the price dropping — having to close their positions to prevent crippling losses.

Some hedge funds that were more successful than others are stemming their losses, and White Square is thought to be one of the first hedge funds to close following the sharp price movements.However, the fund is said to have recovered from much of the January losses, and the newspaper reported the decision to shut the fund was unrelated to the meme-stock rally but due to a review of its business model.

Did Kenny tell you to spin the narrative like that? Invested? I think you mean “naked short sold the shit out of GME and fucked up bad NAKEDSHORTSYEAH

' the decision to shut the fund was unrelated to the meme-stock rally'

Pog

Of course it was 😉

Of course. Dow at all time high. Quitting because they can't handle all those nice profits. Tired of counting. You think we are retarded?..... I guess we are! LMAYO Kennie!

“Unrelated” lmao definitely related. maybe your business model shouldn’t involve relentlessly causing other business to go bankrupt 😂😂 no sympathy

Fixed it for you guys!

'unrelated'

There's no need to be the devil's advocate. They literally do market manipulation as a plethora of independent studies suggest with public links for all sources.

Wen crash?.. 🥱

This is great news. Shorts are despicable mofos. 😂

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