Top hedge fund boosted GameStop, AMC stakes before ‘Roaring Kitty’ meme stock rally: filing

One of many high hedge funds on this planet purchased a large stake in GameStop just some weeks earlier than shares surged as a lot as 400% in the latest “meme stock” rally, a regulatory submitting confirmed Wednesday.

Renaissance Applied sciences, the quant agency based by legendary investor Jim Simons, who died final week, purchased simply over 1 million shares of GameStop in the course of the quarter ending in March, in response to the securities submitting.

Assuming no modifications within the place, the GameStop stake could be value almost $33.5 million via Wednesday — up from a price of about $13 million as of the top of final quarter.

GameStop and AMC have surged in worth in current buying and selling classes. REUTERS

The struggling online game retailer’s inventory spiked 400% at its Tuesday excessive — boosted primarily by the return of “Roaring Kitty.”

The retail day dealer, whose actual identify is Keith Gill, performed a number one function within the 2021 meme-stock frenzy — when mom-and-pop buyers poured into firms like GameStop and AMC to squeeze short-sellers.

RenTech additionally had elevated its stake within the floundering movie show chain by 78% to about 8.7 million shares in the course of the first quarter, in response to the submitting.

That place was value greater than $46 million as of Wednesday buying and selling – up from about $32 million final quarter.

On Wednesday, the meme-stock rally fizzled, with GameStop and AMC plunging by 19% and 20%, respectively.

Nonetheless, their sudden rise this week may nonetheless give RenTech a large windfall.

The agency makes lightning-quick trades utilizing algorithms, which can lead to main modifications to its inventory portfolio every quarter.

Jim Simons
Renaissance Applied sciences founder Jim Simons handed away final week. Patrick McMullan by way of Getty Pictures

Simons, the market guru and mathematician, a died final Friday at age 86.

Gill, who additionally goes by the moniker “DeepF–kingValue” on Reddit, reignited curiosity within the struggling firms after he shared a collection of memes on X earlier this week.

The posts, his first public interplay since 2021, included a meme of a online game participant leaning ahead in his chair and a collection of film clips from widespread TV reveals and flicks corresponding to Marvel’s “Avengers” and “Breaking Dangerous.”

The X account @TheRoaringKitty continued posting film clips on Wednesday, however Gill has but to personally reveal his subsequent transfer.

With Put up wires

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