According to sources from The WSJ, Maplelane, which kicked off 2021 with about $3.5 billion, is down nearly a whopping 45%.
Many of these firms were short stocks like Gamestop (GME) and AMC, and they were definitely feeling the squeeze. The ethics and the delivery of this market action are up for debate, but let’s not start feeling sorry for people like Leon Cooperman.
Reddit & WallStreetBets Were Targeting People Like Cooperman
The stock surges delivered by users from Reddit’s WallStreetBets, Discord, 4chan, and other social media platforms has been nothing if not effective. It’s unclear if the main motivation was to put power back in the hands of the people or to play a twisted joke on the rich. It’s likely a combination of both.
But these market disrupters definitely had people like Leon Cooperman in mind when they started the chaos.
Cooperman has been a poster child for the ‘greedy, unlikable rich guy’ archetype for years.
Bernie Sanders even featured him in a video mocking whiny billionaires:
And let’s be clear, these retail investors don’t necessarily despise billionaires. Some of them are cheering on this revolution. Mark Cuban, who predicted action like this back in August, said this movement is “giving the little guy an edge.”
Elon Musk has been cheering on this rally all along:
There are many hedge funds that have made a lot of money over the years targeting heavily shorted stocks. And so, I don’t think this is anything different, it’s just the people who are making the push aren’t who we expect them to be. And so that’s why I like it…It’s a good thing.
Although it clearly isn’t a good thing for Leon Cooperman.
Disclaimer: The opinions expressed in this article do not necessarily reflect the views of CCN.com.