Editorial: Upsetting the Hedge fund Applecart
A group of small investors, enraged by the dubious hedge funds and their manipulative speculation game, wrecked havoc and upset the Apple cart. These small investors bought the stock of Gamestop that paved the way for fall of several Hedge Funds.
Those who are new to Gamestop, it is an American video game, consumer electronics, and gaming merchandise retailer The company is headquartered in Grapevine (a suburb of Dallas), Texas, United States, , and is the world's largest video game retailer, operating 5000+ retail stores throughout the United States, Canada, Australia, New Zealand, and Europe as of 2021.
The small amateur investors formed an alliance in the online chat room Reddit’s WallStreetBets’ and found the way to beat the Pros in their own game. Smartly utilizing the commission-free trading platforms like Robinhood, this modern day ‘Robinhoods’ audaciously took their pound of flesh from the ‘Hedge fund investors who placed their bets against the Gamestop. When more number of frenetic investors started buying the Gamestopstock, the price skyrocketed and touched the historic high $480+, against the betting of Hedge Fund Managers.
The ‘Online David vs. Goliath Battle’ ended in favour of small-time investors who reaped huge sums of returns on their paltry investment. This is a cautionary tale for the deceitful Hedge Funds. It also shows the real ‘Power of ordinary people.’
By
Editor-in-Chief