{"id":197317,"date":"2021-03-09T02:57:34","date_gmt":"2021-03-08T23:57:34","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/hedge-funds-hit-hard-by-reddit-rally-bounced-back-in-february\/"},"modified":"2021-03-09T02:57:34","modified_gmt":"2021-03-08T23:57:34","slug":"hedge-funds-hit-hard-by-reddit-rally-bounced-back-in-february","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/hedge-funds-hit-hard-by-reddit-rally-bounced-back-in-february\/","title":{"rendered":"#Hedge funds hit hard by Reddit Rally bounced back in February"},"content":{"rendered":"

“#Hedge funds hit hard by Reddit<\/a> Rally bounced back in February<\/strong>”<\/p>\n

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Some of the hedge funds hardest hit by January\u2019s populist short squeeze have already begun recovering from the pain inflicted by retail traders looking to topple Wall Street, The Post has learned. <\/p>\n

At least three funds hurt by manic moves in stocks like Game<\/a>Stop and AMC Entertainment at the start of the year bounced back somewhat in February, including the so-called \u201cReddit rally\u201d movement\u2019s chief target, Melvin Capital. <\/p>\n

The Gabe Plotkin run Melvin, which got a bad rap for a $2.75 billion lifeline it received in the midst of the short squeeze, gained 22 percent last month, as previously reported by Bloomberg News<\/a>. <\/p>\n

Andreas Halvorsen\u2019s Viking Global Investors and Daniel Sundheim D1 Capital Partners have also started on the process of recovery, sources said. Viking grew 5 percent last month while D1 rose 15 percent, sources said. <\/p>\n

The funds are still down for the year, however, following big losses from January\u2019s unprecedented move by retail traders using Reddit boards and no-free trading app<\/a>s to target short-selling hedge funds by buying up \u201cmeme stocks.\u201d <\/p>\n

Melvin, as Bloomberg reported, still needs to churn out a 75 percent gain to break even following its an eye-popping 53 percent loss in January. <\/p>\n

But Viking and D1 are closer to getting back into the green with Viking closing the month of February down just 2.3 percent following a 7 percent decline in January, sources said. <\/p>\n

D1, meanwhile, ended last month down roughly 5 percent after having lost 20 percent in the grueling short squeeze, according to a source with knowledge of the returns. <\/p>\n

The reason for the rebound is unclear except that January\u2019s squeeze on meme stocks was so sudden and huge that it swept over funds in short positions like a tsunami, drowning otherwise healthy portfolios. By covering their shorts as Robinhood restricted trading on GameStop and other meme stocks, funds were able to quickly ride back up in a month when the S&P 500 rose more than 4 percent. \u00a0<\/p>\n

\u201cThis escalated quickly,\u201d quipped one macro hedge fund manager. \u201cJanuary scared the s*** out of these guys, but it looks like they should all be flat or up by April.\u201d\u00a0<\/p>\n

\u201cThey came for \u201cthe suits\u201d and they got some punches in,\u201d mused the trader. \u201cBut I\u2019m not seeing a lot of bruising.\u201d<\/p>\n

Mets owner Steve Cohen saw his Point72 fund, however, returned a more meager 1 percent in February after falling 9 percent in January, sources said.<\/p>\n

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\"Mets
Steve Cohen saw his Point72 fund return a meager 1 percent in February after falling 9 percent in January.<\/figcaption>
Corey Sipkin for the NY POST<\/span><\/figcaption><\/figure>\n<\/div>\n<\/div>\n

The January short-squeeze may have also reignited an old feud between Viking and D1, which was formed in 2017 when Sundheim left his post as Viking\u2019s chief investment officer. The exit forced the Greenwich-based megafund to return $8 billion to shareholders just months before its former star trader launched D1 as one of the biggest hedge fund launches ever.\u00a0<\/p>\n

\u201cThere were definitely some smile in Greenwich to see that Sundheim was down more,\u201d said another hedge fund manager. \u201cSundheim always takes bigger swings than Halvorsen, that\u2019s not a secret.\u201d<\/p><\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#Hedge funds hit hard by Reddit Rally bounced back in February” Some of the hedge funds hardest hit by January\u2019s populist short squeeze have already begun recovering from the pain inflicted by retail traders looking to topple Wall Street, The Post has learned. At least three funds hurt by manic moves in stocks like GameStop…<\/p>\n","protected":false},"author":1,"featured_media":197318,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/02\/WallstreetBets-1.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[96730,72128,71070,73785,5005,70360],"class_list":["post-197317","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-3-8-21","tag-gamestop","tag-hedge-funds","tag-markets","tag-reddit","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/197317","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=197317"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/197317\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/197318"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=197317"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=197317"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=197317"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}