Steve Cohen’s Point72 Buys 606,000 Shares of GameStop

Market News: Steve Cohen's Point72 Buys 606,000 shares of $GME stock.
Market News: Steve Cohen’s Point72 Buys 606,000 shares of $GME stock.

(Business Insider) Steve Cohen’s Point72 supersized its bet on Elon Musk’s Tesla last quarter and made an unexpected wager on GameStop (NYSE:GME) stock.

The billionaire investor’s hedge fund purchased nearly 878,000 Tesla shares, worth $108 million as of December 31.

It also held bullish call options on another 60,500 shares of the automaker at the year’s end, a Securities and Exchange Commission filing revealed earlier this week.

Cohen and his team scooped up 606,000 shares of the video-game retailer, a stake worth $11 million as of December 31.

In 2021, the New York Mets owner deactivated his Twitter account after receiving several threats from users during the ‘meme stock’ rally.

“I’ve really enjoyed the back and forth with Mets fans on Twitter which was unfortunately overtaken this week by misinformation unrelated to the Mets that led to our family getting personal threats,” Cohen said in a statement.

Cohen’s hedge fund, which managed nearly $19 billion in assets at the time, lost nearly 15% after retail investors caused shares of videogame retailer GameStop to surge in 2021.

The losses at Point72 are mainly due to the company’s investment in hedge fund Melvin Capital, which bet against GameStop and had to receive nearly $3 billion in emergency cash from two outside investors, one of which was Point72.

Melvin Capital shut its doors in June of 2022.

GameStop News Today

Market News: Latest GME stock news.
Market News: Latest GME stock news.

Today, GameStop shareholders are looking to recreate the events that occurred in 2021 when stocks soared to all-time highs.

One creative way ‘apes’ are fighting Wall Street in 2023 is by registering their shares via a Direct Registration System, or DRS.

The company says at least 30% of its shareholders have registered their shares with the Direct Registration System (DRS) which equates to approximately 71.3 million shares.

The efforts from retail investors come as a means to prevent manipulative short seller attacks.

By registering their shares, company stock can no longer be lent out to short sellers.

$GME stock is up more than +25% this year-to-date.

Related: Will DRS Trigger a GameStop Short Squeeze?

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