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GameStop share slump hands short sellers $3.6 bln profit this week -Ortex

GameStop share slump hands short sellers $3.6 bln profit this week -Ortex

· 02/05/2021 08:13
GameStop share slump hands short sellers $3.6 bln profit this week -Ortex

- Hedge funds with bearish positions on GameStop, the video game retailer at the centre of the recent retail trading frenzy, made $3.6 billion in profits this week as the share price dropped sharply, financial analytics firm Ortex said on Friday.

That comes after short positions on GameStop GME.N suffered cumulative losses of $12.5 billion over January as a horde of small-time investors piled into the stock, inflating its price as much as 2,400% and forcing many hedge funds to buy them back to cover losses.

But the short squeeze has since ebbed, pushing GameStop shares 90% below last week's peak of $483.

Ortex data also showed hedge funds' profits from shorting AMC AMC.N, another company targeted by retail investors, amounted to $430 million this week as of Thursday close.

In Europe, short sellers of Nokia NOKIA.HE stock made $126 million, the data showed.


(Reporting by Sujata Rao; editing by Thyagaraju Adinarayan)

((sujata.rao@thomsonreuters.com; +44 207 542 6176;))