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Steve Cohen has become the latest victim of the “Reddit Rally”.
Mets Point72 Capital’s billionaire owner’s hedge fund is down more than 10% year-to-date amid unprecedented pressure on stocks like GameStop and AMC Entertainment, industry insiders told The Post.
This creates a sizable hole for Cohen to step out in the remaining 11 months of 2021. Still, Amazins fans shouldn’t be too worried that their beloved new boss is suffering from a Flushing Curse.
Sources tell the Post that most of Cohen’s pain comes from his investment in Melvin Capital, a fund run by his former protégé Gabe Plotkin, who became the first high-profile victim of the social media-fueled market revolt. against hedge funds that make billions. in shorting stocks
Plotkin was reportedly down 30% on Tuesday when Cohen and compatriot Ken Griffin of Citadel decided to bail him out with an emergency injection of $ 2.75 billion.
“If he bailed out Plotkin, I’m not too worried about him,” another hedge fund manager said of Cohen. “Plotkin didn’t have proper risk management for something he couldn’t have seen coming and Steve got hit by a guy who made him billions two years ago. It sucks but he will get over it.
As of Wednesday, Cohen held a relatively small stake of 26,878 shares in GameStop, according to Bloomberg data.
Point72 brought in around 17% in 2020, but the battle with retail traders determined to topple billionaire hedge fund managers from their ivory tower appears far from over.
Users of the Reddit board “WallStreetBets” openly targeted Cohen and his fund on the platform with a taunt, “Mets owners are losing all their money on the stock market.” Name a more iconic duo. “
Cohen appeared to publicly lash out at his antagonists as the short squeeze tightened his grip.
“Restless crowd on Twitter tonight,” he tweeted Tuesday night. “Hey, the jockeys keep bringing it.”
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