Billionaire investor Carl Icahn is alleged to have a big brief place in GameStop (NYSE:GME) that he began to build up in January 2021 on the peak of the meme-stock frenzy for the video-game retailer.
Icahn started constructing his brief when GameStop (GME) neared its excessive of $483 in January 2021 and nonetheless has a big wager that the retailer’s shares will drop, in line with a Bloomberg report, which cited folks acquainted. The precise dimension of the place wasn’t identified
GameStop’s (GME) shares have plunged 71% from their excessive final 12 months and have drop 32% this 12 months. GameStop, which introduced a four-for-one inventory break up earlier this 12 months, has brief curiosity of 21%.
Icahn, greatest referred to as an activist investor who just lately disclosed a stake in beverage can maker Crown Holdings (CCK), is faring a lot better than different funds that shorted GameStop (GME). Former hedge fund Melvin Capital shut down earlier this 12 months at the very least partly after it was pummeled by the GameStop (GME) brief squeeze final 12 months.
Icahn isn’t just betting that GameStop will fall. Earlier this month he mentioned he nonetheless believes that we’re in a bear market and does not count on inflation to go away within the close to time period. He is additionally has a brief wager towards the S&P 500.