According to Investor’s Business Daily, nine large hedge funds gained $16 billion from speculation on GameStop. Thus, the narrative of David against Goliath is definitely rebuked.
“Nine investors, including large fund-running institutions like Fidelity’s FMR and BlackRock plus some well-positioned individuals like Chewy co-founder Ryan Cohen watched the value of their GameStop holdings soar more than $1 billion apiece just this year….
“All told, these nine investors made a total of roughly $16 billion on their GameStop stakes, just in January. That means they grabbed roughly three-quarters of the $20.4 billion gain in the company’s market value this year. GameStop is now worth $22.7 billion, up from just $1.3 billion a month ago.“
Meanwhile, GameStop shares have plunged 65% since Friday, Jan. 29. This means that gains by investors who bought real shares will be somehow cancelled – but not gains from derivative bets.
