Daytraders reunidos after plataforma Reddit – who consider themselves status quo fighters when hunting actions short – ended up increasing the fortune of some billionaires.
Larry Chen, president e CEO from GSX Techedu, saw its net worth rise by $ 4.2 billion on Wednesday when the shares of the Beijing-based online education company jumped 36%. His fortune reached US $ 15.6 billion in the Bloomberg Billionaires Index.
His fellow countryman Wang Jianlin had his equity increased by US $ 773 million through his participation in AMC Entertainment Holdings. A huge movement of independent bag caused the stock to rise 310%, despite the fall in the market as a whole.
Hedge funds like Mudrick Capital, which owned 4.6 million shares in the cinema chain on January 4, also won.
Ryan Cohen, co-founder of Chewy, became $ 1.8 billion richer thanks to participation in the retailer of videogames GameStop, whose share has advanced more than 1,700% this year alone. Donald Foss, founder of vehicle finance company Credit Acceptance, owns a stake in GameStop that today is worth about $ 1.2 billion, according to the index compiled by Bloomberg.
Even the CEO of Tootsie Roll Industries did well. Ellen Gordon’s fortune grew by $ 185 million after the shares of the candy and confectionery maker hit a record high.
National Beverage founder Nick Caporella saw his net worth rise by $ 1.8 billion to $ 6.8 billion after the shares of owner of the carbonated water brand LaCroix jumped 40%.
Day traders have dedicated themselves to stocks that were in the sights of those who bet on falling stocks. As a result, stocks that were short sold ended up rising to the highest levels on record.
The astronomical surge in GameStop’s stock has already shaken institutional investors and Melvin Capital was forced to liquidate its short position on Wednesday.
The search for stocks with huge short sales positioning is led by a Reddit platform forum called WallStreetBets, with 2.8 million members.
Some of them took a more activist stance, contextualizing the initiative as a way to combat social problems such as financial inequality and the unjust distribution of resources between generations.