Tag: Citadel (Page 1 of 5)

Chicago Tribune Says Citadel Securities’ Dark Pool Targets Small Investors

Market News: Citadel Securities Dark Pools Exposed
Market News: Citadel Securities Dark Pools exposed

The Chicago Tribune just published a piece explaining exactly what retail investors have been warning the SEC about.

Citadel Securities’ dark pool dominates a big part of the financial world, accounting for as much as half of U.S. stock market activity.

The Chicago Tribune says this prominent dark pool is run by Chicago Billionaire Ken Griffin’s Citadel Securities and has been targeting small scale retail investors.

And they’re not wrong.

Dark pools are typically involved in payment for order flow (PFOF), where they pay broker firms to receive retail order flow.

Brokers such as Robinhood and TD Ameritrade accept payment for order flow.

But retail investors have now brought these nefarious practices in the market to light.

Let’s discuss it.

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Taking down Citadel’s dark pool

Citadel Securities Dark Pool
Citadel Securities Dark Pool

The Chicago Tribune has acknowledged investors’ orders almost never make it to the New York Stock Exchange (NYSE) or NASDAQ.

The editorial team say they get redirected to electronic platforms run by private market makers who match buyers with sellers at a price they determine, behind closed doors.

Citadel Securities’ dark pool is able to make money on the difference between bid and ask prices when trades are matched.

This creates major conflict of interest as the orders they fill are not competing against one another; therefore, the price is open for manipulation.

SEC Chairman Gary Gensler said himself 90% to 95% or retail’s orders do not get processed through the lit exchange.

And although light is shining on this very real problem, nothing is being done about it by our regulators yet.

“The U.S. Securities and Exchange Commission is responsible for revising its rules to keep up with technology and, here’s a surprise, the regulators have fallen behind.” – The Chicago Tribune.

But the editor says the problem is the SEC has too much on their hands and are spreading themselves thin.

They’re focused on crypto regulation, SPACs, and climate control.

It’s rather clear dark pools are not the SEC’s main priority.

Citadel Scandal

Citadel Scandal - Ken Griffin Lied
Ken Griffin – Citadel Scandal

Citadel has been heavily scrutinized by retail investors for not only heavily shorting ‘meme stocks’, but for suppressing the price driven by retail demand with its dark pool.

#KenGriffinLied began trending on Twitter earlier this year and again this month when the U.S. House Committee on Financial Services released a report confirming Robinhood and Citadel did indeed have blunt negotiations prior to trading restrictions on January 28th of 2021.

The “GameStopped” report documents in detail the events that lead to the halting of ‘meme stocks’.

Ken Griffin swore under oath that Citadel and Robinhood had no communication the day prior to the restrictions, but proof has now surfaced.

The question now is, will the case dismissed by Judge Cecilia Altonaga late last year get reopened?

The Miami district court judge admitted the Citadel and Robinhood transcripts were suspicious.

However, the federal court has dismissed the case due to a lack of evidence.

According to Business Insider, the court said that the evidence between Citadel Securities and Robinhood was not sufficient.

The retail community found Judge Cecilia Altonaga had ties to the defendant in the Robinhood and Citadel case, creating a major conflict of interest.

But mainstream media isn’t covering this.

What can be done about this corruption in the market?

Wall Street Corruption

If you’ve been one of my day-ones, you know I’ve always preached raising awareness.

Raising awareness is what gets people to learn, dive deep, and stand against market injustices.

People want to fight for a cause, people want to fight for freedom.

Instead of focusing on the things that are out of our control (SEC, market manipulation, etc.), we must focus on the things that are in our control.

And that is raising awareness to educate the population.

I truly believe this is the way to creating real change.

If this resonates with you, please be sure to give this article a social share.

It all starts with us, one by one, as individuals.

You can follow me on: Twitter | Facebook | LinkedIn


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Who is The DTCC and What Are Their Legal Duties?

Market News: DTCC
Market News: Who is the DTCC?

Retail investors have pulled up some information on the DTCC regarding the blockage of margin calls.

The Reddit community is calling the organization corrupt.

But what exactly is the DTCC and how do they play an important role in our markets?

In this article I’m going to explain the duties of this corporation in simple terms and also touch topic on questions retail investors might have when it comes to AMC and GameStop.

Let’s get started.

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Who is the DTCC?

who is the DTCC?
Depositary Trust and Clearing Corporation

The DTCC (Depositary Trust and Clearing Corporation) is an American post-trade financial services company providing clearing and settlement services to the financial markets.

The DTCC processes trillions of dollars of securities on a daily basis.

As the centralized clearinghouse for various exchanges and equity platforms, the DTCC settles transactions between buyers and sellers of securities.

The information is recorded by its subsidiary, the NSCC.

After the NSCC has processed and recorded a trade, they provide a report to the brokers and financial professionals involved.

This report includes their net securities positions after the trade and the money that is due to be settled between the two parties.

Conflict of interest

Clearing corporations such as the DTCC may receive cash from a buyer and securities or futures contracts from a seller.

The clearing corporation then manages the exchange and collects a fee for this service.

The size of the fee is dependent on the size of the transaction, the level of service required, and the type of security being traded. 

Investors who make several transactions in a day can generate significant fees.

This means every naked share that has been created on the ‘short side’ has been recorded and bypassed by the DTCC/NSCC, all for a fee.

And this is where retail investors begin to question the integrity of the financial market.

One of the DTCC’s bigger partners is Bloomberg LP, a privately held media and software company.

Retail investors are weary about Bloomberg due to having a dark pool where institutions can make unregulated trades.

Bloomberg also happens to be a media platform where Citadel’s Ken Griffin is made to feel at home.

The short seller remains to this date one of the top 10 institutions shorting AMC stock.

Related: Wall Street Journal is Indirectly Owned by Citadel's Ken Griffin

DTCC removing margin calls

There is information going around in the retail community of the DTCC removing margin calls and it’s creating somewhat of fear, uncertainty, and doubt.

After digging around for a while, it’s important to note that the DTCC did indeed remove margin calls, but on January 28th of 2021.

This isn’t necessarily occurring right this moment.

A press released was published advising of the circumstances that occurred during the time ‘meme stocks’ were halted.

The DTCC waived $9.7 billion of collateral deposit requirement on January 28th, 2021, limiting institutional losses and limiting retail profits.

Could the DTCC have been playing the middleman to prevent the market from completely collapsing?

Or was this blatant market manipulation?

The organization allowed several naked shares to flood the market but never stepped in to level the playfield for retail investors.

So why step in to minimize institutional losses?

I think it’s safe to say those client fees really make things happen.

The SEC is by law responsible for regulating the DTCC, but the DTCC is a company who caters to a wide range of institutions in the financial market.

And according to the SEC Chairman Gary Gensler, they need whistleblowers to really tackle the issues at hand.

Is the DTCC corrupt?

Most retail investors openly think so.

The corporation is a business that processes orders between buyers and sellers but caters to financial institutions – not retail investors.

The DTCC along with the NSCC are very well aware of the naked shorting issue in our market.

But they’ve failed to put a halt to it.

One can view this negligence as being complicit.

I’m curious to learn what you think.

Leave your thoughts in the comment section of the blog down below.

Also, be sure to stick around for the latest market news.

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Will The Apes Successfully Take Down Wall Street Again?

Apes vs wall street
Stock Market News and AMC Updates: Apes VS Wall Street

Retail investors known as ‘apes’ were able to do what no one else in history has ever done before.

They exposed fraud in the stock market and uncovered conflict of interest no one was ever supposed to see.

In the midst of it, a handful of investors made money, causing massive hedge funds to lose billions of dollars.

Do the ‘apes’ have the power to win big again?

And if so, what’s it going to take?

Let’s discuss it.

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Shorts think retail investors are experiencing fatigue

Reuters just published an article giving us some insight to what suits think of the current ‘meme stock’ situation.

They understand that short interest in AMC is rising despite its fundamental improvement.

Shorts seem to have gained some confidence in the bear market – go figure.

Wedbush Securities Inc. says it doesn’t seem like it’s a great time to short AMC.

Bets against the company “reflect that institutional investors think that the retail shareholders are experiencing fatigue here.”

While it’s true buying has cooled down, apes are still very much in this play to squeeze shorts from their positions.

Many investors have gone on the offense for months now and are supporting AMC Entertainment outside the market.

Shareholders have become so loyal to the brand that they’ve become the very guests attending the movie theatres.

Volume might not be on the rise like last year, but movie theatre attendance sure is.

The ape community has grown to understand just how important the fundamentals of the company are, despite a short squeeze not requiring them.

Retail investors might look like they’re on the sideline, but little do shorts know they’ve been on the offense the entire time.

A beacon for change

We the investors
We The Investors – apes sign to ban PFOF

The ‘ape’ community continues to be a beacon for change.

Community members recently gathered on social media to sign a petition going out to the SEC, created by activist Dave Laurer.

We The Investors is an initiative to get retail’s concerns in front of SEC Chairman Gary Gensler in efforts to raise awareness of the problems retail investors face in the market.

The letter to ban PFOF (payment for order flow) received more than 71.5k signatures.

“Together, we’re going to make sure that retail represents itself, & that firms who productize their clients can’t claim to represent them. Together, we’re going to make markets simpler, fairer & more transparent”, says Dave.

Ken Griffin’s Citadel is pushing back on the possibility of the SEC banning PFOF, along with the entire hedge fund industry.

However, other apes are taking a much different approach.

Unlike Dave Lauer, majority of retail investors don’t believe in the SEC.

They’re using marketing campaigns to put pressure on our regulators as seen below.

A mobile billboard truck was spotted in New York reading “The SEC is Complicit with Wall Street Corruption“.

Meanwhile, content creators on social media continue to educate the masses on market injustices.

Institutional investors beware, apes aren’t leaving.

Related: Here's Why Mainstream Media is Attacking AMC

AMC stock prepares for a breakthrough

AMC Entertainment Stock
AMC Entertainment Stock – Will apes trigger a short squeeze?

Buying pressure tends to slow down during bear markets, but this isn’t stopping retail investors from staying in the game.

While the ‘hodl’ game is strong, big buying pressure will soon be underway as the markets begin to shift upwards again.

Momentum from shorts closing will fuel retail’s demand for the stock, inevitably forcing a short squeeze.

And fortunately for AMC shareholders, there are plenty of short sellers in this play to send AMC’s stock price to a new all-time high.

An incredibly important part of history is being written today.

Will you be a part of it?

Leave your answer in the comment section of the blog down below.

For market news and more AMC updates:

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Bookmark: AMC Short Interest Daily Updates

Here’s Why Mainstream Media Is Attacking AMC

Here's why mainstream media is attacking AMC
Why does mainstream media target AMC Entertainment?

If you’re new to the ‘ape’ community, you might be wondering why in the world is mainstream media attacking AMC.

It’s to the point where the shilling has become almost unnatural.

Why are they portraying Adam Aron a certain way?

Why are mainstream media portraying retail investors a certain way?

At first glance, snarky headings could potentially sway new investors from staying clear from investing in the world’s largest movie theatre chain.

But there is always the truth.

Here’s why mainstream media keeps attacking AMC Entertainment Holdings, Inc.

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Short and distort campaigns

The biggest way mainstream media is attacking AMC is through ‘short and distort’ campaigns.

Elon Musk said in a CNBC interview hedge funds have used short selling and complex derivatives to take advantage of retail investors.

The complex derivatives Elon is referring to could be an array of things such as options trading, HFT, swaps, borrowed stock, and even naked shares.

So, where does mainstream media play a role in all this?

The Tesla CEO says hedge funds will short a company, conduct negative publicity campaigns to drive the stock price down, then cash out and do it multiple times over.

This tactic is what’s known as “short and distort”.

Hedge funds impose their influence on corporate media such as The Fool, Wall Street Journal, and MarketWatch to scare people out of their money.

Here, writers get paid to write about a certain topic or narrative, hence the conflict of interest.

The Motley Fool: Forget AMC
The Motley Fool: Forget AMC

Here are a few titles published by one of the biggest participants in ‘short and distort’ campaigns, the Motley Fool:

  • Forget AMC: Is Clover Health the New Reddit Stock That Will Make You Rich?
  • Forget AMC Entertainment: These Stocks Will Make You Rich
  • Forget AMC and GameStop: These 2 Popular Robinhood Stocks Are Better Buys
  • Forget AMC: Consider This Streaming Stock Instead
  • Forget AMC and GameStop: This Stock Could Double Your Money

And the list goes on and on.

These types of headlines cost investors who didn’t take a position a lot of money.

While mainstream media warned investors of AMC, Franknez.com was saying to buy AMC when it was at $5 per share, the stock soared more than 3000% months later.

Hedge funds have always colluded with the media to drive share prices lower by publishing hit pieces speaking negatively of a company.

Not only has mainstream media attacked AMC with headlines but has strongly recommended the public to stay away from it.

Connecting the dots

Yahoo Finance AMC Stock
Yahoo Finance AMC Stock

AMC Entertainment stock has been one of the most viciously attacked stocks in the market.

This year alone, AMC has topped 16.5 million FTDs through May.

It’s no secret AMC was close to going bankrupt during the height of the pandemic.

A path to recovery seemed bleak – so short sellers naturally gravitated towards the stock.

The goal?

To short AMC Entertainment out of existence, profiting with no tax accountability.

But that vision was shattered when retail investors bought the stock en masse, forcing some shorts to close their positions and sending AMC’s share price to a new all-time high of $72 per share.

Mainstream media tried to derail investors from buying the stock throughout the entire journey.

See, MarketWatch, Wall Street Journal, Barrons, and other shill platforms are owned by News Corp.

News Corp. is the biggest news conglomerate in the world.

Citadel’s Ken Griffin, who just happens to have one of the top 10 institutions shorting AMC Entertainment, also has a stake in News Corp.

The conflict of interest is undeniable.

Other platforms partaking in short and distort campaigns include Yahoo Finance, InvestorPlace, and The Motley Fool.

Isn’t AMC over? Why does it matter?

AMC Short Interest

AMC isn’t over, which is why mainstream media continues to attack the century old movie theatre chain.

The short interest is still very high.

When AMC’s share price rose to $72 per share, its short interest dropped from 23% to 20%, and then to 14%.

AMC’s current short interest is back up to 22.63%, updated daily here.

And mainstream media will do whatever it takes to protect its clients.

They won’t touch topic on the short interest or address predatorial short selling strategies used to drive the share price down.

They’ve used AMC’s recovering fundamentals to bypass everything else.

But even then, AMC’s fundamentals have improved drastically, shocking Wall Street today.

The fact is AMC continues to be a short squeeze play in 2022, and mainstream media doesn’t want the public to know this.

Hedge funds already lost billions last year, with some even closing due to the damages caused by ‘meme stocks’.

Those who know, know.

If you’re interested in learning more about AMC and the community, be sure to join the newsletter, or connect with me on social media.

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Related: Here's How Shareholders Can Trigger an AMC Short Squeeze

Tiger Global Parts Ways with Partner Who Caused Massive Losses

Tiger Global Sam Harland
Market News: Tiger Global parts ways with Sam Harland

Tiger Global just parted ways with Sam Harland, the partner responsible for sinking the hedge fund when it betted on Carvana.

The hedge fund suffered 52% in losses this year through May.

Their average cost basis is $105.80, more than five times the $24.27 level the stock closed on Friday.

Both Harland and Tiger Global Management declined to comment on his departure according to Bloomberg.

Here’s the latest market news.

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Hedge funds struggle to stay afloat

Hedge funds seem to be stranded on a sinking ship as losses accumulate this year.

One hedge fund who betted against GameStop is closing this month.

Last year many hedge funds were forced to cut their losses and throw in the towel on losing bets.

Tiger Global Management closed 2021 with a 7% loss.

They reported a 52% loss this year through May.

Tiger Management Losses
Tiger Global Management losses (blue) | Tiger Global Management News

The hedge fund may be on track for its worst year yet.

Earlier this year we saw Citadel and other hedge funds faced default on Russian bonds from tech company Yandex.

Investors tried pulling out $250 million from Coatue Management but the hedge fund couldn’t meet investors demands.

Aside from the shorting of ‘meme stocks’, hedge funds are also getting burned from tech stocks falling.

The NASDAQ has fallen nearly -32% this year-to-date taking down every major tech company down with it.

Amazon (AMZN) is down more than -37% this year, Tesla (TSLA) -45%, and Apple (AAPL ) -27.72%.

Carvana is down nearly -90%, one of the heaviest held assets by Tiger Global Management.

Tiger Cubs ditch positions

The Tiger Cubs alliance consists of Tiger Global Management, Lone Pine Capital, Coatue Management, Maverick Capital, Viking Global Investors and D1 Capital.

According to Bloomberg, majority of the Tiger Cubs stock picks are in tech stocks.

Tiger Global exited 83 positions depicted in the chart below and entered only 2 new positions.

Tiger Cubs ditch positions
Tiger Cubs ditch positions

The Tiger Cubs have been known for piling into the same or similar stocks primarily because they all had the same mentor.

Below is a list of only some tech companies the Tiger Cubs have recently reduced from their positions.

Big name companies include Carvana, DoorDash, Netflix, and Shopify to name a few.

Tiger Cubs Losses
Tiger Cubs Losses | Tiger Global Management News

These companies might have been extremely convenient during the pandemic lockdowns, but the truth is people are going out now.

Now that gyms are open to the public, people have no need for Peloton.

Netflix couldn’t replace the movie theatres, and so on.

Some experiences are simply irreplaceable.

And it’s showing in tech company stock.

I’d love to hear your thoughts on the matter.

Join the discussion in the comment section of the blog down below.

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Bank of America Increases Short Position in AMC

Market News: Bank of America AMC
Market News: Bank of America increases AMC puts

Bank of America and JP Morgan continue to bet against AMC despite the repercussions.

Like hedge funds, banks have also been under much public scrutiny for betting short in the market.

Regulators subpoenaed some of the largest banks and hedge funds after investigating communications between the two parties earlier this year.

Goldman Sach’s dark pools were investigated in May – a popular issue amongst the retail community.

Combined, hedge funds and banks have millions of shares working against the largest movie theatre chain in the world.

And in this article, I’m going to break down the most recently reported numbers.

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Bank of America bets against AMC Theatres

Market News: Bank of America Increases Short Position in AMC
Market News: Bank of America increases short position in AMC

Bank of America increased their short bets against AMC in May, according to this Fintel report.

The bank now holds a total of 1,007,500 puts of AMC Entertainment Holdings, Inc. stock.

Retail investors were shocked to discover BofA was one of the top 10 financial institutions betting against the movie theatre chain last year.

And they haven’t left, but rather remained bearish on AMC.

The ball might be in their court in today’s bear market, but retail investors are already weary of the market’s integrity.

Last year, hedge funds sought out to destroy the movie theatre chain by shorting it to bankruptcy.

But retail investors put a stop to the madness – saving AMC Entertainment from collapsing, and inflicting billions of dollars in damage to short sellers.

Retail investors even closed their bank accounts with Bank of America after discovering the bank was betting against the beloved movie theatre stock.

Meme stocks were no joke.

Corporate fraud and corruption were exposed, retail made money, and the media lost all credibility.

But Bank of America isn’t the biggest bear when it comes to AMC stock.

Here’s a list of other banks and hedge funds going short on AMC.

Institutions shorting AMC stock

Institutions shorting AMC stock - who is shorting AMC
Who is shorting AMC?

#1. Susquehanna – 11,004,100 shares short

#2. Citadel – 4,889,900 shares short

#3. Goldman Sachs – 2,785,00 shares short

#4. Group One – 2,221,900 shares short

#5. 683 Capital – 1,992,600 shares short

#6. Bank of America – 1,007,500 shares short

#7. Wolverine Trading – 921,400 shares short

#8. Piction Mahoney – 500,000 shares short

#9. JP Morgan – 400,000 shares short

None of these institutions have closed their positions in AMC.

One hedge fund that was removed from the list is Sculptor Capital LP – the institution closed their small position at a loss this year according to Fintel.

Anchorage Capital closed last year after betting against AMC.

The hedge fund held 4,000,000 puts prior to shutting down.

Even Gabe Plotkin’s Melvin Capital is shutting down in June after GameStop crippled the short seller last year.

Bank of America might have increased their short position in AMC, but is it wise to bet against retail?

Retail has power, and I think retail is about to prove it again very soon.

I’m interested to learn what you think.

Leave your thoughts in the comment section of the blog below.

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Hedge Fund Tiger Global on Brink of Shutting Down?

Hedge fund Tiger Global
Market News: Hedge Fund Tiger Global down more than 50% this year.

Hedge fund Tiger Global is on the brink of collapsing.

WSJ reports the hedge fund is lost 52% for the year up to May.

It was down 34% this year through March but the institution keeps sinking.

Melvin Capital threw in the towel after suffering several losses this year.

Is hedge fund Tiger Global the next one to go?

Let’s discuss it.

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Let’s dive right into it!

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Hedge fund empires crumble

Melvin Capital lost a staggering 20.6% the first quarter this year alone.

In 2021, they took a heavier hit with 50% in losses.

Now Gabe Plotkin’s Melvin Capital is shutting down end of June.

The Tiger Cubs, an alliance consisting of hedge fund Tiger Global Management, Lone Pine Capital, Coatue Management, Maverick Capital, Viking Global Investors and D1 Capital are facing massive losses this year too.

According to Bloomberg, majority of the Tiger Cubs stock picks are in tech stocks.

Which as we know, have been plummeting all year.

Tiger Global exited 83 positions depicted in the chart below and entered only 2 new positions.

Coatue Management is another hedge fund who has been struggling to keep its doors open this year.

Last year investors demanded to pull out $250 million from the hedge fund but Coatue was unable to meet demands.

Coatue said the money they could not deliver to their clients was being held in private companies, making it difficult to liquidate.

Today we see Coatue Management exited 35 stocks and only entered 12 so far.

The rest of the cubs aren’t doing so well with everyone exiting more positions than entering them.

Hence the reason why we’ve seen the market fall all year.

Will hedge fund Tiger Global close?

Tiger Global Hedge Fund

Although the hedge fund has wiped out more than $16 billion in assets under management, Tiger Global continues to hold on.

“We take very seriously that our recent performance does not live up to the standards we have set for ourselves over the last 21 years and that you rightfully expect. Our team remains maximally motivated to earn back recent losses,” the hedge fund wrote.

But even then, the hedge fund has struggled to find a winning strategy.

Tiger Global was down more than 34% the first quarter of 2022.

And instead of finding a solution, the hedge fund sank to a total of 52% halfway through Q2.

Things aren’t looking so good for the hedge fund.

What do you think?

Will hedge fund Tiger Global be the next institution to fall?

Leave your thoughts in the comment section of the blog down below.

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Related: Ken Griffin Attacks: "Pension Plans Destroyed by Retail Investors"

The Tiger Cubs Are on The Brink of Collapsing

Tiger Cubs Hedge Fund
Market News: Tiger Cubs face disturbing losses as tech stocks fall

(Bloomberg) Hedge fund managers known as Tiger Cubs are facing serious carnage in the market.

The alliance consists of Tiger Global Management, Lone Pine Capital, Coatue Management, Maverick Capital, Viking Global Investors and D1 Capital 

Billions were made in tech stocks, but gains have now evaporated.

Tech stocks have fallen the first quarter of 2022 and have bled into the second quarter this year.

Is it possible the Tiger Cubs are the next hedge fund managers to join Melvin Capital’s grand exit?

Let’s discuss it.

franknez.com

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!

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NASDAQ plummets in 2022

The tech-heavy NASDAQ 100 has fallen more than 29% this year.

It’s down more than 11% from the S&P 500 (down 18.47% YTD).

According to Bloomberg, majority of the Tiger Cubs stock picks are in tech stocks.

Tiger Global exited 83 positions depicted in the chart below and entered only 2 new positions.

The hedge fund sank 34% the first quarter of 2022.

Tiger Cubs positions

Coatue Management is another hedge fund who has been struggling to keep its doors open this year.

Last year investors demanded to pull out $250 million from the hedge fund but Coatue was unable to meet demands.

Coatue said the money they could not deliver to their clients was being held in private companies, making it difficult to liquidate.

Today we see Coatue Management exited 35 stocks and only entered 12 so far.

The rest of the cubs aren’t doing so well with everyone exiting more positions than entering them.

Tiger Cubs cut their losses

Below you’ll find a chart showing the worst-performing stocks widely held by the Tiger Cubs.

Big name companies include Carvana, DoorDash, Netflix, and Shopify to name a few.

Tiger Cubs Losses
Source – Bloomberg

The Tiger Cubs have been known for piling into the same or similar stocks since they all had the same mentor.

These hedge funds are facing significant losses despite being in it together.

Melvin Capital saw a 50% loss in 2021 and another 20.6% during the first quarter of 2022 before throwing in the towel.

The hedge fund was destroyed by retail investors when it decided to bet against game retailer GameStop and other ‘meme stocks’.

Ken Griffin defended Gabe Plotkin’s Melvin Capital in a Bloomberg exclusive attacking retail investors.

The Citadel founders said retail investors wiped out teacher’s pension plans by bankrupting Melvin Capital.

And the retail community is biting back, speaking the truth.

CALPERS, the largest pension fund in America loaded up on AMC and GameStop and sold Netflix, though.

Ray Dalio’s Bridgewater sold Tesla this Q1 and bought AMC stock for the first time and increased their stake in GameStop.

These are two examples where conventional wisdom doesn’t always make sense (i.e., investing in fundamental tech stocks).

And we can see hedge funds who do follow this ‘conventional wisdom’ are suffering because of it.

Which hedge fund will be next to fall?

Some of you said on Twitter Tiger Global could be the next hedge fund to fall.

Coatue Management has been in deep waters too.

I’m curious to know what you think about where hedge funds are currently headed.

Leave your thoughts in the comment section of the blog below.

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Related: Ken Griffin Attacks: "Pension Plans Destroyed by Retail Investors"

Ken Griffin Attacks: “Pension Plans Destroyed by Retail Investors”

Ken Griffin on Retail Investors
Market News: Ken Griffin on retail investors

Ken Griffin accused the retail community of destroying teacher’s pension plans by taking down Gabe Plotkin’s Melvin Capital.

Melvin Capital is a hedge fund that was short on ‘meme stocks’ holding a large position in GameStop.

The company is scheduled to shut down in June after it had suffered a 50% loss in 2021, and an additional 20.6% in the first quarter of 2022.

Sources say Melvin Capital has already begun to liquidate its positions to pay back investors in cash.

In this Bloomberg exclusive, Ken Griffin plays a role of the victim, defending Mr. Plotkin and the hedge fund whose mission it was to bankrupt GameStop.

Ken Griffin’s Citadel is also short on AMC Entertainment – the hedge fund lost billions last year betting against retail.

Let’s discuss it.

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CNBC mourns the loss of Melvin Capital

CNBC says Melvin was one of the biggest victims from the meme stock frenzy last year due to its large short position in GameStop.

They say Citadel and Point72 had to provide Melvin Capital with a lifeline to stay above the water.

The hedge funds combined provided Gabe Plotkin with $2.75 billion in capital last year.

However, as things went south quick for Melvin, both hedge funds demanded the capital back.

Something Ken Griffin and his affiliates fail to mention.

Mainstream media has also danced around the fact that hedge funds planned to wipe American companies by overleveraging their short positions during the pandemic.

Success in doing so would delist AMC, GameStop, and other meme stocks from the stock market.

Betting against companies with intention to bankrupt them to the ground is no charity work.

It’s un-American and a nefarious practice that has dragged out for too long.

Ken Griffin blames retail investors

In the video below, Ken Griffin gives his thoughts on retail investors and the entire ‘meme stock’ phenomena.

Ken Griffin takes a jab at the retail community saying retail investors who aimed to bankrupt Melvin Capital also wiped-out pension funds from teachers.

But Ken, retail investors don’t get up in the morning and think to themselves, “let’s wipe out a multi-billion-dollar hedge fund.”

Melvin Capital lost because he went against retail – the first time in history the people fight back corruption in the stock market, and win.

Ken Griffin lost billions shorting AMC stock, the retail community is currently his biggest adversary.

AMC shareholders continue to buy and hold the stock until short sellers exit their positions, which will result in a short squeeze.

Today’s retail investors are armed with education, they understand what they hold and what it’s doing to hedge funds.

While Ken Griffin and affiliates might be pumping a narrative as victims, high profiles such as Elon Musk, Jon Stewart, and Ryan Cohen have stood up against short sellers.

For the first time in history, Wall Street is getting their a** kicked, and these hedge fund managers certainly do not like that.

Hedge funds should prepare for bigger losses

Institutions are about to lose a massive amount of collateral due to executive order 14032 in early June.

This presidential order is prohibiting Chinese securities to be used as collateral starting June 2nd, 2022.

It was responsible for initiating margin calls when AMC Entertainment stock rose to $20 per share in January, and $72 per share in June of last year.

With liquidity drying up in global markets, it’s going to be quite difficult for hedge funds to keep up with margin requirements on heavily shorted ‘meme stocks’.

Massive selloffs in the market have proved just how distressed financial institutions are.

We’re seeing for the first-time hedge funds begin to shut down as they take the lead in liquidity burn.

Retail investors have been the majority of buyers in today’s markets according to Bank of America.

Hedge funds are headed towards a larger train-wreck of disaster they cannot get off of.

As they continue to tank the markets, margin requirements go up thanks to DTCC B16845-22.

Hedge funds have lost control.

But I’m curious to know what you think.

Leave your thoughts in the comment section of the blog below.

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Hedge Fund Melvin Capital Is Shutting Down End of June

Hedge Fund Melvin Capital is Shutting Down End of June
GameStop short seller Melvin Capital is closing its doors this summer

Hedge fund Melvin Capital, notoriously known by the retail community for betting against GameStop is now closing its doors.

2022 marks the second year in a row the short seller underperforms.

Melvin Capital lost a staggering 20.6% the first quarter this year alone.

In 2021, they took a heavier hit with 50% in losses.

Now the hedge fund tells CNBC they will be shutting down by the end of June and starting a new company.

Let’s dive deeper.

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The apes were right

In March, I published a tweet asking the community whether Melvin Capital would be the next hedge fund to default.

We all saw this coming, but 90% of you voted YES.

Forward a month later and now the hedge fund is announcing it is closing this summer.

Earlier in March we saw another notorious hedge fund known for shorting GameStop pull $2 billion from Gabe Plotkin’s Melvin Capital.

That hedge fund was Citadel.

Citadel also lost billions last year shorting so called ‘meme stocks’, so it comes as no surprise as to why they pulled out from Gabe Plotkin’s Melvin Capital.

Ken Griffin’s Citadel also imposed tight restrictions on its clients leading into the new year.

Customers were given an ultimatum to either stay with the firm otherwise coming back would prove to be difficult.

Steve Cohen’s Point72 redeemed $750 million from Melvin Capital around the same time.

Ken Griffin received a $1.2 billion lifeline from partners Sequoia and Paradigm in January of this year.

This was the first time Citadel had ever received private funding.

Don’t bet against the apes

Mainstream media doesn’t give retail investors enough credit for shedding light on market injustices.

The ‘ape’ community has grown since last year as retail investors discover the short interest data that points towards a bigger AMC runup than that of January and May of last year.

In this video I go over patterns that are similar to those from last year’s runup and what we should keep a close eye out on.

The apes were right about naked shorting, dark pools, and the dangers of betting against retail.

Now hedge funds are dealing with the consequences of betting against the people.

Majority of the community continues to buy and hold ‘meme stocks’ such as AMC and GameStop in efforts to create a massive short squeeze.

Retail has said it many times, a short squeeze is inevitable.

While the SEC might be proposing rules that could wash naked short selling, yet avoid them in the future, it would take years to enforce if passed.

Will hedge funds survive?

Hedge funds are currently facing deep scrutiny from both retail investors and regulators.

The DOJ is taking Morgan Stanley, Goldman Sachs, and numerous other hedge funds to court.

Citadel is one of the short sellers currently being investigated by the Department of Justice according to a Bloomberg report.

The SEC and DOJ are looking into the following:

  • Communication between banks and hedge funds
  • Proof of ‘Bear Raids’
  • Spoofing
  • And several other market manipulation tactics

Hedge fund Muddy Waters was already raided by the FBI earlier this year for flooding the market with fake orders to drive stock prices down.

Melvin Capital is only one of many hedge funds that has closed down in the past year due to overleveraged short selling, and bad bets.

What are your thoughts on the Melvin Capital news?

Did you see it coming?

Leave a comment below.

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