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Bloomberg
Reddit Day Trader Army increases the fortunes of the super-rich
(Bloomberg) – A horde of traders on Reddit who see themselves as sticky to the establishment by looking for heavily short-circuited stocks are adding billions to the wealth of some of the world’s ultra-rich. Larry Chen, chairman and chief of GSX executive Techedu saw his fortune increase by $ 4.2 billion on Wednesday as the U.S. depository shares of the Beijing-based online tutoring firm rose 36%, bringing his net worth to 15.6 billionaire according to the Bloomberg Billionaires Index. Chinese billionaire Wang Jianlin’s fortune increased by $ 773 million thanks to his stake in AMC Entertainment Holdings Inc. A flood of retail traders pushed the stock up to 310 % even as the market as a whole collapsed. Hedge funds such as Mudrick Capital, which held 4.6 million shares in the movie theater operator as of Jan. 4, also received a boost. Matthewy Inc. co-founder Ryan Cohen added about $ 1.8 billion with its stake in GameStop Corp. game retailer that has jumped over 1,700% this year. According to the Bloomberg Index, investor Donald Foss, founder of subprime auto lender Credit Acceptance Corp., now has a stake of around $ 1.2 billion, even the head of Tootsie Roll Industries Inc. has benefited, the CEO Ellen Gordon’s fortune increasing by $ 185 million. shares in the confectioner hit a record high, while National Beverage Corp. founder Nick Caporella saw his net worth jump from $ 1.8 billion to $ 6.8 billion as shares of the maker of LaCroix sparkling water soared 40%. by short sellers in recent sessions, driving them to record levels. GameStop’s meteoric rally has already exhausted some institutional investors, with Melvin Capital closing its short position by Wednesday, the hunt for heavily bypassed stocks is being led by the Reddit forum WallStreetBets, which has around 2.8 million members. Some of the more outspoken have taken an activist stance, describing their campaign as taking a stand against societal issues such as financial inequality and generational injustice. Gordon owns just over half of the common stock of Tootsie Roll Industries and 81 % of its B shares, according to company filings. Her stake in Tootsie Pops maker Junior Mints and Dubble Bubble gum, which she owns both directly and on behalf of other family members, now stands at $ 1.8 billion. revealed an investment in GameStop in August. As of December, he had bought 9 million shares of the retailer at a total cost of $ 76 million and now owns a stake worth about $ 3.1 billion. GameStop stock rose 135% to a record $ 347.51 in New York after triggering three stops in volatility. Wang, the founder of tightly-owned conglomerate Dalian Wanda Group, now has a stake of around $ 1 billion dollars in AMC, which climbed to $ 19.90 in New York trading, the most since October 2018. Wang has a net worth of $ 14.4 billion, according to the Bloomberg Billionaires Index. (Earnings updates from second paragraph onward.) For more articles like this, please visit us at bloomberg.com the most trusted source of business news. © 2021 Bloomberg LP
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