Jump to content
Washington Football Team Logo
Extremeskins

Bloomberg: How WallStreetBets Pushed GameStop Shares to the Moon


No Excuses

Recommended Posts

1 hour ago, tshile said:

The problem is what @techboyhighlighted earlier. 
 

the hedge funds and the people that make the decision to short GMe the way they did, will likely come out fine one way or the other. 
 

the teachers, police, etc that have their retirements being invested by them won’t

 

you can say the people running those unions should know better

 

Wait, teachers unions were using Melvin Capital and/or other hedge fund managers to manage their retirement system investments? 

 

 

Link to comment
Share on other sites

3 hours ago, Llevron said:

 

We are probably going to have to set up some kind of government agency to openly monitor the internet for things like this. I mean think about how much advice packaged as jokes and political statements have hurt this country in just the last 5 years, and imagine how much it will if we dont regulate it. Donald Trump did this regularly, now that I think about it. He would say some wild outlandish **** and everyone would say its a joke to cover for him, and then he would try his best to bend the system and do it. You can argue it literally lead to the (continued) attacks on the capital. 

 

And I hate every word I just typed but I dont know how else you do it without relying on people to be smart. And I personally have no faith in that. 

 

i haven't really read or thought much about this subject.... but from a starting position i don't think it would be a negative to put "sand in the lubrication" of these fast transactions.   If it is possible, automatically delay ALL transactions (say by 4 hours ?) get rid of both that inherent arbitrage opportunity, and the unfair advantage that instant traders get (most people get significanly delayed transactions, also).  

 

I also think there should be some sort of a Tobin tax. (a per transaction tax that is nominal enough that you barely notice it if you are just doing regular trading or balancing, but really ads up quickly if you are doing lightning  arbitrage type transactions) 

Link to comment
Share on other sites

42 minutes ago, The Evil Genius said:

 

Wait, teachers unions were using Melvin Capital and/or other hedge fund managers to manage their retirement system investments? 

 

 

 

Many pension funds invest in private equity and hedge funds. I don't know how much of their holdings, but it's very common.

 

Here's one random example, the Chicago Police Pension Fund, where their policy is 9% PE or Hedge funds, plus other stuff.

 

image.thumb.png.96c1cf5bcf72bba9f44c6d35a0723590.png

 

https://chipabf.org/perfreports/2020_q1_performance.pdf

 

 

Edited by Corcaigh
  • Thanks 1
Link to comment
Share on other sites

46 minutes ago, The Evil Genius said:

 

Wait, teachers unions were using Melvin Capital and/or other hedge fund managers to manage their retirement system investments? 

 

 

 

I don't know about Melvin Capital specifically, but as @Corcaighnotes, it's quite common for pension funds to invest in hedge funds because they frequently have (often unrealistically) high targets for return to keep up benefits without raising taxes.

 

Hedge funds promise those returns. Until they explode. There's a reason Buffett won his famous bet where he pitted an S&P 500 index fund against a group of hedge funds, and as I recall, it wasn't even particularly close.

Edited by techboy
  • Thanks 1
Link to comment
Share on other sites

Maybe I'm way off but it occurs to me that a large union (such as a real Chicago PD) should be chasing the more stable return rates rather than exposing itself to the whims of the rates seen occasionally with hedge funds. 

 

I guess I'm not educated enough on the processes but I always thought these largest retirement systems were more regulated and watched (and more conservative in their investments).

 

Thx for the info guys.

Link to comment
Share on other sites

40 minutes ago, Llevron said:

I dont think AMC is ever going to hit 20 again. Shame, I was really looking for it to go crazy like GME. I would have been set for a good little minute. 

 

I was that close yall :(


Cmon now. Don’t give up. This is what they call “paper hands”.

Link to comment
Share on other sites

7 hours ago, techboy said:

 

The fact that you have to ask means you should really do some research before you try this kind of trading. For example, did you know that while going long caps theoretical losses at the value of the purchase (it can only go to 0), short positions have unlimited loss potential?

Jeez, I was just asking a question... for a friend

Link to comment
Share on other sites

2 hours ago, Llevron said:

I dont think AMC is ever going to hit 20 again. Shame, I was really looking for it to go crazy like GME. I would have been set for a good little minute. 

 

I was that close yall :(

 

that's exactly what the hedgefunds, Big Movie, and Big Retail Game Store want you to think 🤔

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...