Re:Statement of SEC Regarding Recent Market Volatility
by enraged_camel on Friday January 29, 2021 @11:04AM
(#25958699)
I mean, some hedge funds are making money, sure. But the point is that, collectively, billions of wealth have so far been transferred from institutional investors to regular investors.
Re:Statement of SEC Regarding Recent Market Volatility
by dagw on Friday January 29, 2021 @11:10AM
(#25958767)
But the point is that, collectively, billions of wealth have so far been transferred from institutional investors to regular investors.
Perhaps, but for every dollar that gets transferred to a small handful of regular investor, I suspect at least 10, if not a 100, is probably being transferred to different institutional investors.
I just don't buy the Wall Street vs The People narrative. This is Wall Street vs Wall Street with The People picking up scraps from the battle field and hoping they don't get stepped on.
Re:Statement of SEC Regarding Recent Market Volatility
by FabHK on Friday January 29, 2021 @11:26AM
(#25959019)
Also, how much of that has been realised vs just being paper gains/losses? I'm not convinced the original hedge fund shorters have really closed out all their positions at a loss. Or maybe they've closed out some of their shorts at a loss, then entered the short again at a higher point and are now poised to make even more money on the (inevitable) way down.
Conversely, a few investors that bought cheap might have made huge returns - if they sold at inflated prices (passing the hot potato to the next greater fool). If they didn't sell, then the paper gains will vanish.
Re:Statement of SEC Regarding Recent Market Volatility
by adrr on Friday January 29, 2021 @11:19AM
(#25958895)
Not it hasn’t. Retails hasn’t yet sold and the market doesn’t have the demand to hold sell off at the current price. The billions paid by hedgefunds went as pure profit to the big FIs like blackrock. When all this done and financial disclosures come out. The winners will be the big financial firms who have already made their money selling stocks at this inflated price.
A few hedge funds (of different sizes) are indeed losing billions. A few other hedge funds have taken the opposite side of this bet and are making money. The vast majority of hedge funds have no position in this stock and are completely unaffected.
In addition a bunch of HFT shops and similar making a lot money off the volatility and order flow all this has caused.