Platoons of investors beat hedge funds at their own game – for now
It can be seen as the moment when populism stormed the citadels of high finance, but there are likely to be few winners when the GameStop trading episode is over
Until a few days ago, GameStop looked like the next casualty of the crisis on the global high street. The Texas-based video games retailer was shutting hundreds of stores around the world to stem losses caused by the migration of its customers online. Its shares traded below $5 last summer, an activist investor was on its case, and hedge funds had significant “short” positions in the stock, expecting the price to keep falling.
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