Tag Archives: Gamestop

Citadel Can’t Beat the S&P 500, Despite High Fees

Citadel LLC trailed the S&P 500 in 2021, returning 26.3% to the market’s 29%.

Citadel charges as much as 5% or more of the fund’s assets every year, in addition to 20% of all gains. These fees are among the highest of any investment fund.

Why should investors pay such massive fees when the Vanguard S&P 500 Index Fund Admiral fund (which I own) charges a mere 0.04% of assets with no performance fee?

The only possible justification would be returns that are consistently far higher than the market’s. While Citadel’s Wellington fund has outperformed the market in some years, such as 2020, its performance is inconsistent.

Few hedge funds have consistently beat the market. Jim Simon’s Medallion fund has returned 39% a year net of fees annually since 1988, but is closed to new investors.

Perhaps this underperformance is why Citadel is trying to make it harder for investors to withdraw their money.

Unless a fund can consistently beat the market by a wide margin, high fees will make it a losing investment. Hedge funds sound mysterious and awesome, but you may do better with boring old Vanguard!

More on markets:

AMC Fails to Deliver Soar Past 400,000

How Solana Could Wipe Out Visa and MasterCard

Citadel Holding Nearly $500 Million in AMC Options

Photo: Citadel LLC CEO Kenneth Griffin

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

AMC Blows Up Hedge Fund with Sordid Past

AMC Entertainment Holdings, Inc. has blown up another prominent hedge fund to close out 2021:

The New York-based hedge fund Anchorage Capital Group has shut down after more than 18 years of capital management.

Anchorage Capital had 4 million put options on AMC, which accounted for 17.8% of its portfolio.

Anchorage Capital Group had the second-largest short position against AMC stock.


The hedge fund’s founder, Kevin Ulrich, has a sordid past. From Bloomberg:

Last year, a woman sued Ulrich, accusing him of sexual battery in a Manhattan hotel in 2019 — a complaint that was later withdrawn. Institutional Investor, citing an Anchorage client, reported in November 2020 that Ulrich settled with the accuser and that clients were displeased by the firm’s failure to disclose the allegations after they became a matter of public record.

Perhaps Ulrich was a little too busy with the rape allegations to mind his portfolio.

Anchorage compounded their misfortune with massive put option bets on other meme stocks like GameStop Corp. and Bed Bath & Beyond, Inc. The $7.4 billion fund will now be liquidated.

Anchorage’s returns had been lackluster for years, and its assets under management had shrunk by half from their peak. Indeed, Bloomberg reports it had been “trying to shrink.”

I’m sure AMC shareholders were happy to give them some help with that.

There will be no blog tomorrow. See you on Monday and happy new year!

More on markets:

AMC, GameStop Volumes Plummet as Investors Move to Computershare

How Did High Dividend Stocks Perform In the Last Crash?

Ken Griffin to Spend $300 Million to Defeat Governor

Photo: “Fruit of the fireball machine” by SiamEye is licensed under CC BY-NC-ND 2.0

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

AMC, GameStop Volumes Plummet as Investors Move to Computershare

Today, the hottest name among meme stock investors may not be AMC Entertainment Holdings, Inc. or GameStop Corp., but an obscure Australian stock transfer company.

Investors in meme stocks have been moving their shares to Computershare in massive numbers since summer. The Australian company allows investors to hold shares directly, rather than through a broker.

A Seismic Shift

As investors began to hold their shares directly for the long term, volumes in AMC and GameStop have plummeted:

AMC traded nearly 800 million shares a day in early June and is down to under 50 million now. GameStop was trading over 20 million a day in June, but now fewer than a million shares trade hands in a typical day.

Why Computershare?

Many investors are concerned that their shares are being loaned out to hedge funds to sell short. This can drive down the price of the stock.

Brokerages insist they only lend out shares that were bought on margin. But many investors are skeptical.

Even if brokerages are telling the truth, there’s another compelling reason to use Computershare: Robinhood’s January trading curbs.

In January, Robinhood made it impossible to buy shares of GameStop, AMC, and other meme stocks. This cratered demand for the shares and they fell substantially.

With Computershare, investors can buy shares directly. However, unlike many brokerages, there are fees for buying and selling with Computershare.

Whether you want to go to the extra trouble to hold shares directly will depend on the person. But direct ownership is a valuable tool in the investor’s kit, and I’m glad it’s becoming better known!

Do you own shares directly or via a broker, and why? Let me know in the comments below.

More on markets:

GameStop Now Accepting Dozens of Cryptocurrencies

How Did High Dividend Stocks Perform In the Last Crash?

Citadel Holding Nearly $500 Million in AMC Options

Photo: “papa gorilla” by leamaimone is licensed under CC BY-NC-SA 2.0

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

GameStop Now Accepting Dozens of Cryptocurrencies

GameStop Corp. is now accepting dozens of cryptocurrencies including Bitcoin and Dogecoin, per a report from Investor Place yesterday.

These cryptocurrencies can be used at any one of GameStop’s locations or online. GameStop is using the Flexa network, which supports a wide variety of cryptocurrencies.

This comes shortly after AMC Entertainment Holdings, Inc. began accepting crypto payments, including Bitcoin and Ethereum.

Meme stocks trying to draw in the adjacent crypto community is a wise move. All marketing costs money, but accepting crypto provides a bunch of press attention for the minimal cost of joining the Flexa network.

Flexa appears quite robust, with tens of thousands of retail locations on its platform. It reminds me of a Square for crypto; easy payment acceptance for merchants.

If GameStop ever delivers streaming games on its own platform, crypto payments could be particularly useful. Unlike with credit cards, customers from all over the world could purchase access with no foreign exchange fees.

Will accepting crypto payments make or break GameStop or AMC’s business? Of course not.

But for businesses that rely on foot traffic, anything that builds buzz at low cost is a huge win!

What do you think of GameStop and AMC accepting crypto payments? And who do you think will be next?

Let me know in the comments below.

This is the last blog for this week. I’ll see you again on Monday.

Merry Christmas!

More on markets:

Hedge Fund Paid Researcher to Write Misleading Reports on Seeking Alpha

Parody Site Sues Citadel to Stop Shutdown

How Did High Dividend Stocks Perform In the Last Crash?

Photo: Photo: “Retail GameStop” by ccPixs.com is licensed under CC BY 2.0

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

Ken Griffin to Spend $300 Million to Defeat Governor

Major news today as Politico reports Citadel LLC CEO Kenneth Griffin may spend up to $300 million in the next Illinois selection. He is determined to unseat Democratic Governor J.B. Pritzker and push a slate of conservative candidates:

A source who spoke to Playbook about [political operative] Mike Z, also said Griffin has committed $150 million to the campaign, which would match what Pritzker spent in his first run for governor.

Other media reports have attributed “multiple sources” as saying Griffin is willing to spend as much as $300 million in next year’s election.

Griffin was also behind a shadowy group that defeated a ballot measure for a progressive state income tax last year. The group is now interviewing potential gubernatorial candidates in secrecy, per Politico.

I find the idea of a billionaire threatening to outspend a sitting governor single handedly while interviewing candidates in secret disturbing. This is not the type of proportional representation consistent with democracy.

I also find the idea of the state’s richest resident, with a net worth of $21 billion, secretly campaigning to stop a fairly modest 8% top tax rate unseemly. Griffin has benefited enormously from the state but seems unwilling to give back.

Wherever you turn, you seem to find Griffin and his firm. His hedge fund is conversing with Robinhood right before they limit trades, causing large losses for meme stock investors.

At the same time, he’s investing in Melvin Capital, which had short positions in those same stocks. Now he’s the plutocrat kingmaker in Illinois politics.

And he even picked up a copy of the Constitution for a cool $43 million. After all, Junior had to have it!

Griffin seems determined to throw his weight around wherever he can. The question is, how long are we going to take it?

More on markets:

Hedge Fund Paid Researcher to Write Misleading Reports on Seeking Alpha

How Solana Could Wipe Out Visa and MasterCard

Parody Site Sues Citadel to Stop Shutdown

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

Hedge Fund Paid Researcher to Write Misleading Reports on Seeking Alpha

I came across an intriguing story today. A hedge fund was exposed in court for paying a researcher to release false reports on popular financial site Seeking Alpha.

From Bloomberg:

One cautionary tale emerged in court after Dallas-based Sabrepoint Capital agreed to pay a short-selling researcher a monthly retainer of $9,500 in 2018. Sabrepoint encouraged him to dig into real estate company Farmland Partners Inc. The researcher, who also wrote publicly under a pseudonym, later published an article on Seeking Alpha, setting off a 39% drop in Farmland’s share price. The company sued and used a judge’s order to force him to reveal his identity: Quinton Mathews. 

Mathews later said in a statement that he subsequently learned his article “contained inaccuracies and false allegations” and retracted it.


Sabrepoint likely booked a handsome profit from this “FUD (fear, uncertainty and doubt)” campaign. I’m all for confronting uncertainty and having doubts, but they should be well founded, not fabricated for profit.

This does not appear to be an isolated incident:


Studies by Columbia University law professor Joshua Mitts have found that short sellers’ reports can briefly induce bouts of panic selling before shares rebound. In those jittery moments — sometimes mere minutes or hours — well-positioned short sellers can cash out of trades and pocket significant gains.

Mitts examined more than 1,700 reports made by pseudonymous short sellers from 2010 to 2017, concluding that they contributed to more than $20 billion in dislocated values or temporarily mispriced stocks.


Given the massive losses hedge funds have taken in meme stocks like AMC Entertainment Holdings, Inc. and GameStop Corp. this year, I suspect hedge funds have used “short and distort” tactics in those stocks as well. It’s important to remember that information on sites like Seeking Alpha may not be reliable.

The good news is the Department of Justice is investigating these and other hedge fund abuses. And unlike the SEC, the DOJ can charge people criminally and put them in jail.

Here’s hoping justice prevails!
What do you think of these “short and distort” campaigns and the DOJ investigation? Leave a comment at the bottom and let me know!

More on markets:

Parody Site Sues Citadel to Stop Shutdown

How Did High Dividend Stocks Perform In the Last Crash?

Citadel Holding Nearly $500 Million in AMC Options

Photo: “BilLIARds” by Johnny Vulkan is licensed under CC BY-NC-SA 2.0

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

Parody Site Sues Citadel to Stop Shutdown

Last week, I told you about Citadel LLC winning an arbitration case to shut down parody site Citadel Air. Now Citadel Air is fighting back:

A critic of the financial firm Citadel and its CEO has filed a lawsuit to stop the transfer of his domain name.

The lawsuit, filed in Federal District Court in Arizona, seeks to reverse the arbitration decision and keep the site online. From Domain Name Wire:

In the lawsuit, Britt alleges, “This is simply a case of a multi-billion dollar company trying to silence a private citizen who is critical of its operations and pokes fun at its CEO’s extravagant lifestyle.”

I had the pleasure of speaking with the creator of Citadel Air, Christopher Britt, recently. He’s an eloquent man with a deep belief in freedom of speech.

From our conversation:

I have seen far too many people and parody accounts censored, suspended, or outright banned on Twitter. I have seen Citadel LLC and their CEO Ken Griffin silence individuals and companies like a bully. Let’s think about this… the 45’th wealthiest individual in the United States is going out of his way to silence me?

This is now a First Amendment issue.

I am fighting back because Ken Griffin believes that throwing money and lawyers at individuals to silence them is the right thing to do.

I agree wholeheartedly with Chris. He should have a right to parody a powerful, famous man and his company.

Chris is clearly not trying to impersonate Citadel. He’s not offering asset management services under the Citadel name or anything like that.

He’s merely making gentle fun of a controversial billionaire.

What does America stand for if all it takes to shut someone up is money?

I, among others, encourage Chris to raise money for his fight. I’d be glad to donate.

But he has declined. For him, it’s not about money.

It’s personal.

I wish him the very best!


What do you think of Citadel and Griffin trying to shut down Chris’s site? Leave a comment at the bottom and let me know!

Have a great weekend, everyone!

P.S. Check out the “Friday” parody near the bottom of the Citadel Air page. Hilarious.

More on markets:

Citadel Suppressing Critics with Legal Action

Citadel Holding Nearly $500 Million in AMC Options

How Solana Could Wipe Out Visa and MasterCard

Photo: Citadel LLC CEO Kenneth Griffin

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

AMC Stock #2 News Story, #7 Overall Search on Google

I knew AMC was popular. But wow.

AMC stock is the number #2 most popular search on Google News and the #7 most popular search on all of Google for 2021, the search engine reported today. That is an incredible achievement for any stock, much less a modestly sized theater operator!

What strikes me is how many different things people search for. “Thai food near me.” “Why is my toenail brown?” You name it!

To see this formerly obscure stock top those charts is truly amazing.

New AMC projects like minting NFT’s could keep that buzz going into 2022 and beyond. I just hope AMC can convert the enthusiasm for its stock into ever more moviegoers!

What do you think about AMC topping Google search for the year? Let me know in the comments at the bottom!

More on markets:

Citadel Holding Nearly $500 Million in AMC Options

How Elrond Could Take Over Payments Worldwide

Citadel Suppressing Critics with Legal Action

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

Citadel Sues to Crush Competitors

“You’re the one who’s trying to regulate your way into a market victory”

Judge Justin Walker

Citadel Securities LLC is suing the SEC to stop curbs on high frequency trading:

A federal judge challenged a lawyer for Citadel Securities LLC about its efforts to thwart a new kind of market order from IEX Group Inc., the stock exchange operator made famous by “Flash Boys.”

“It’s you who’s going to a federal agency and saying stop a private entity from doing what they want to do,” U.S. Circuit Judge Justin Walker said at a hearing in Washington on Monday, after attorney Jeffrey Wall argued that the order type interferes with the natural course of the market.

The order type, known as D-Limit, has a roughly 350-microsecond delay to blunt the advantage of high-frequency traders.

Citadel makes massive sums from high frequency trading.

Brad Katsuyama created the IEX to stop high frequency traders from front running mutual funds and other investors. Now, IEX is offering a new technology, the D-Limit order, to help.

So Citadel sues the SEC to make them stop!

Imagine if Blackberry could’ve sued the government to make it stop the iPhone. Well, Blackberry might be doing a whole lot better today.

But the average person wouldn’t.

In Citadel’s defense, they’re having a tough time lately. Average investors in meme stocks like AMC Entertainment Holdings, Inc. are suing them in Florida.

And the SEC is considering a ban on payment for order flow, one of Citadel’s main sources of revenue.

It’s interesting to see who’s for the D-limit order. One proponent is Vanguard Group, which holds the savings of many individual investors, including me.

Vanguard is evidently convinced that circumventing high frequency traders will help the average investor. But for Citadel, Vanguard is competition in the market.

And Citadel will stop at nothing to win.

The only real question is: will we let Citadel lobby and sue its way to total control of markets?


This is the last blog for this week. There will be no blog next week; I’ll be visiting Barcelona!

See you on Monday, November 29th.

Until then, enjoy a few of my favorite posts. Happy Thanksgiving, everyone!

Starting a Financial Plan from 0

Citadel Builds Huge Position in AMC Call Options

Male Contraception With an Ultrasound Device?

NJ’s Best Apple Cider Donut

The Painting I Love the Most

Photo: “Ken Griffin” by DanGPhotos1 is licensed under CC BY 2.0

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

AMC and GameStop Short Sellers Down $10 Billion for 2021

Shares in AMC Entertainment Holdings, Inc. and GameStop Corp. have skyrocketed this year. As retail traders pile in, short sellers are nursing deep wounds.

According to the latest data from S3 Partners, shorts have lost over $10 billion in both companies for the year. And their losses are accelerating:

The GameStop and AMC short-sellers had lost $6.18 billion and $3.37 billion by the end of trading on October 26th and by the end of trading on November 4th, these losses had extended to $6.51 billion and $3.69 billion, respectively.

This indicates that during the seven trading days in between, investors who had bet against both companies had lost $320 million each for $640 million in cumulative losses.

Most short sellers are hedge funds.

If those funds were making bets with their own money, I’d say that’s their business. But hedge funds’ assets generally come from pension plans and university and charitable endowments.

To gamble the future of education, charity, or people’s retirement betting against highly volatile stocks is reckless. Were I an investor in such a fund, I’d be withdrawing my capital immediately.

Meanwhile, the best performing funds are taking the opposite side of the bet.

Renaissance Technologies LLC, one of the best performing hedge funds in history, increased its ownership of AMC by 40% in the third quarter. And that’s after tripling holdings in the second quarter.

So who’s right? I have no idea.

But I do know that betting people’s retirement money against turbulent stocks is completely irresponsible.

More on markets:

Citadel Builds Huge Position in AMC Call Options

Starting a Financial Plan from 0

AMC May Issue Its Own Cryptocurrency, Per CEO

Photo: Photo: “the Great Hedge Fund Hei$t” by eyewashdesign: A. Golden is licensed under CC BY-NC-ND 2.0

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order.