Mudrick Capital Management LP, the hedge fund that provided a much-needed lifeline for AMC Entertainment Holdings Inc. in December, is sitting on hundreds of millions of dollars in earnings after last week’s stock price rally. AMC.
The New York-based company made a profit of $ 200 million, mostly from its holdings in AMC debt, according to a person familiar with the matter.
Mudrick’s gains come from a combination of paper gains and transactions made, the person said.
AMC stock value nearly tripled last week as the movie chain’s stock caught the attention of individual investors swarming with popular Reddit forums looking to repeat the dizzying rally seen in GameStop Corp stocks.
However, most of Mudrick Capital’s gains come from its holdings in the company’s bonds, which rose as the company’s stock price rose.