9 & 10 News
January 29, 2021
After hedge fund investors bet on stock of GameStop dropping, attention from a Reddit thread brought multiple people to buy shares- costing some investors over $5 billion.
CIO of Mercer Advisors, Don Calcagni, says this type of surge in a stock isn’t completely unusual, but the amount everyday people participating is.
“It was a group of non professional investors that actually took the hedge funds to the cleaners,” says Calcagni. “These folks said you know what let’s all buy the stock and push up the price. Which, in turn, hurts those firms who tried betting against the price.”