London hedge fund White Square Capital has told investors it will be shutting down, a move that follows double-digit percentage losses from a bet against
stock, according to the Financial Time.
The hedge fund suffered the losses in this year’s first even equities rally in January, but then recovered much of that lost ground, the newspaper said. He said the decision to close the fund was the result of a review of White Square’s business model, rather than the GameStop rally.
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GameStop was the biggest game in January’s rally, when retail investors bought shares of the ailing video game retailer, hoping to force the hedge funds that had sold the stock short, betting the price would decline, to buy stocks to close their money loss. posts. The tactic succeeded dramatically, triggering both an explosive rise in the action and similar moves on other actions, such as
AMC Entertainment Holdings
(AMC), which had attracted the interest of short sellers.
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White Square, which was founded by Florian Kronawitter, a former trader at Paulson & Co., had managed up to $ 440 million in assets.
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