Institutional Investor just published a somewhat odd article trying to convince readers that Ken Griffin is on the same side as retail investors.
I know, smells fishy already.
But the article seems rather misinformative.
According to the article, Citadel and other hedge funds previously shorting AMC are now going long.
They did not provide any evidence, but I was able to find some intriguing data.
Let’s take a look below.
Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.
Let’s dive right into it!
Join the newsletter to become part of an activist group fighting for market transparency!
Receive weekly market news and articles like this to stay up to date.
Ken Griffin on the same side as retail investors?
Multi-billionaire and owner of hedge fund Citadel Ken Griffin is actually on the same side as retail investors?
The same hedge fund that was betting against AMC Entertainment in hopes to profit from its downfall?
I’m not sure if that aligns with the aspirations of retail investors but I’d love to hear from you on this one in the comment section.
I couldn’t find any evidence of the claims Institutional Investor was making, but I did find some data from Fintel.
The hedge fund opened 3.2 million puts during the same month.
Institutional Investor says Citadel owned approximately 2,305,711 shares of AMC but neither Fintel nor MarketBeat show this to be true.
Other hedge funds that were previously short on AMC and purchased shares were Millennium and Wolverine as shown below.
It looks like aggressive short sellers are now going long.
This is big news for AMC Entertainment.
Has the company finally convinced Wall Street of its worth?
Why are hedge funds going long on AMC now?
The answer is quite simple, hedge funds are simply hedging their losing bets.
They are going long as momentum spurs and going short during cool-off periods.
It makes sense, but does it mean Ken Griffin is on retail investors side?
I think that’s a little too much.
Ken Griffin’s Citadel takes advantage of retail investors by trading their orders in foreign exchanges, profiting from better trading deals outside the lit market.
The hedge fund also has the power to suppress stocks from moving up based on retail demand by overleveraging their short positions and flooding the market with selling pressure.
This is why retail investors disdain Ken Griffin and Citadel.
Market makers and hedge funds have prevented AMC from fully squeezing which means they’ve tampered with retail’s money.
And retail will never be okay with that.
Institutional Investor says Ken Griffin is on retail’s side because Citadel is going long on AMC.
Are they trying to clear their name with this hit?
What do you think?
Leave your thoughts below.