10 Hedge Funds that Profited from Reddit’s Meme Stock Craze

Published July 14, 2021 at 10:49 am EDT Updated August 19, 2026 at 5:08 am EDT

In this article, we discuss the 10 hedge funds that profited from Reddit’s meme stock craze.

Hedge funds have been reeling from meme stock rallies over the past few months that are orchestrated by retail investors using internet platforms like Reddit to coordinate. Already under heavy pressure from the rise of fintech applications that have made the world of finance more accessible and inclusive, hedge funds have suffered record losses while attempting to short-sell stocks since the beginning of this year. However, the more shrewd hedge fund managers, who realize how the market dynamics are changing, have used the situation to their advantage.

For example, Michael Burry, the chief of Scion Asset Management, was one of the first to bring GameStop Corp. (NYSE: GME), the video game retailer and entertainment products seller, to prominence. He sold his stake, worth around $7 million, in the company in the second quarter of 2019 before reinvesting in the third quarter, pouring $17 million for 3 million shares. Burry also wrote to the board of directors of the firm thrice, asking them to clean up their act. A few months afterwards, these pleas caught the attention of Redditors.

These Redditors then drove one of the biggest stock rallies of the year, and the price of GameStop Corp. and AMC Entertainment Holdings, Inc. (NYSE: AMC), another firm in a similar situation, surged by over 500% in a matter of days. Some of the meme stocks presently popular on WallStreetBets, a 10-million strong Reddit forum, can offer investors an insight into what sectors of the market can expect increased volatility in the next few weeks. Hedge funds, wary of these stocks, are also actively tracing Reddit forums to stay updated.

AMC Entertainment Holdings, Inc., the Kansas-based movie theatre firm, and GameStop Corp. have survived the short-selling attempts and remain priced higher than hedge funds might have expected after the initial meme stock rally in January. They have made hundreds of millions in profits to some funds, which are discussed in detail below, but have also resulted in losses worth more than $6 billion to others. It is, however, fair to say that hedge funds are on the backfoot in this meme stock battle with retail investors.

The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Crispin Odey of Odey Asset Management Group

With this context in mind, here is our list of the 10 hedge funds that profited from Reddit’s meme stock craze. These were ranked keeping in mind the overall profit, size of the hedge fund, and the market credence of the hedge fund manager.

Hedge Funds That Profited From Reddit’s Meme Stock Craze

10. Silver Lake Partners

Estimated Gain From Meme Stock Craze: $113 Million

Silver Lake Partners is placed tenth on our list of 10 hedge funds that profited from Reddit’s meme stock craze. It is a fund headquartered in California. It has a portfolio value of over $10 billion and concentrates on investments in tech-related companies. During the AMC Entertainment Holdings, Inc. short squeeze, as the share price surged close to 500% in January, Silver Lake sold off the stock it owned in the movie theatre chain and made around $113 million from the sale, according to a Bloomberg report published in February.

Silver Lake Partners has invested heavily in Airbnb, Inc. (NASDAQ: ABNB), a California-based vacation rental firm. At the end of the first quarter of 2021, 52 hedge funds in the database of Insider Monkey held stakes worth $2.4 billion in Airbnb, Inc., down from 68 in the preceding quarter worth $1.6 billion.

Just like Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), Shopify Inc. (NYSE: SHOP), AMC Entertainment Holdings, Inc., GameStop Corp., and Clover Health Investments, Corp. (NASDAQ: CLOV), Airbnb, Inc. is one of the stocks that Redditors recommend buying.

In its Q4 2020 investor letter, Blue Hawk Investment Group, an asset management firm, highlighted a few stocks and Airbnb, Inc. (NASDAQ: ABNB) was one of them. Here is what the fund said:

“We typically avoid new issues, with ABNB being a rare exception. ABNB fits right into our wheelhouse as a leader in a promising industry, with a disruptive business model, unique company culture, massive addressable market, and a name synonymous with a category (“got an Airbnb for the weekend”). Towards the end of the year, the narrative of the hot IPO/SPAC environment we found to be fitting, with exception. We believe grouping ABNB into this category is a mistake. The IPO was botched, but the mistake was the initial offering price being far too low in this case. We believe the reason for this initial mispricing was the proximity of the IPO to the vaccine effectiveness data release. The data turned out to be much better than anticipated, a blue-sky result, causing a drastic change in the outlook for travel and lodging, the industry in which ABNB operates. Bayes Theorem in action, people typically have a bias when incorporating new information, in that they do not adjust their view as quickly as they should, and the vaccine data release required an almost complete reversal of views.

Back to the company, we started buying on day one and continued to build a position into the $120s and $130s. A founder-led firm, we believe the company has an excellent management team, a very attractive growth profile with many levers at their disposal, and embedded optionality due to their attractive position in the travel ecosystem (and minimal reliance on Google). The most underappreciated aspect of the story is the attractiveness of the financial model. Not many IPOs come along that get us excited, but we believe the future is bright for this young company. We will reveal more details about our thesis in future letters.”

9. Engineers Gate Manager

Estimated Gain From Meme Stock Craze: N/A

Engineers Gate Manager is a hedge fund that operates from New York. It has a portfolio value of more than $2 billion and is managed by Greg Eisner who has developed a reputation for investments in the technology and services markets. The fund made a big bet on GameStop Corp. stock at the end of 2020. Regulatory filings at the end of the first quarter of 2021 revealed that the fund had exited 95% of its position in GameStop Corp., perhaps taking advantage of a record stock rally fueled by Redditors.

Engineers Gate Manager holds a large stake in Colgate-Palmolive Company (NYSE: CL), a New York-based consumer products firm. Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder in Colgate-Palmolive Company with 11.9 million shares worth more than $940 million.

Colgate-Palmolive Company stock is mentioned alongside Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), Shopify Inc. (NYSE: SHOP), AMC Entertainment Holdings, Inc., GameStop Corp., and Clover Health Investments, Corp. on Reddit forums.

Here is what First Eagle Investment Management has to say about Colgate-Palmolive Company (NYSE: CL) in its Q1 2021 investor letter:

“The leading detractors in the quarter (included) Colgate-Palmolive Company. After a strong 2020 fueled in part by lockdown-driven demand, consumer staples stocks generally cooled during the first quarter as investors shifted attention to the more economically sensitive areas of the market likely to benefit from re-openings and improved discretionary spending. The effects of this rotation could be seen in the share price underperformance of names like Colgate-Palmolive.”

8. Landscape Capital Management

Estimated Gain From Meme Stock Craze: N/A

Landscape Capital Management is ranked eighth on our list of 10 hedge funds that profited from Reddit’s meme stock craze. The fund is headquartered in New Jersey and has a portfolio value of $637 million. It focuses on investments in the basic materials and services sectors of the economy. Reuters reports that the fund was one of the few that added to their position in GameStop Corp. during the last quarter of 2020, just a few weeks before a record rally saw the share price of the video game retailer jump more than 700%, bringing in profits worth millions for those who had purchased the stock when it was cheap.

One of the top holdings of Landscape Capital Management is BHP Group (NYSE: BHP), a multinational mining company based in Australia. Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in BHP Group with 7.9 million shares worth more than $553 million.

Reddit forums are full of mentions of BHP Group, as well as other stocks like Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), Shopify Inc. (NYSE: SHOP), AMC Entertainment Holdings, Inc., GameStop Corp., and Clover Health Investments, Corp..

7. Shellback Capital

Estimated Gain From Meme Stock Craze: $65 Million

Shellback Capital is a hedge fund managed by Doug Gordon, Jon Hilsabeck, and Don Jabro. It has a portfolio value of more than $1.6 billion with investments concentrated in the services and industrial goods markets. The fund is based in Boston. The fund bought 200,000 shares in GameStop Corp. in late 2020, a stake that was worth over $3.7 million at the time. If the fund had sold these shares in the ensuing weeks, as the share price of GameStop Corp. climbed to a record $347, it would have netted a profit of $65 million.

Shellback Capital has invested heavily in Accenture plc (NYSE: ACN), an Irish firm that markets consulting and professional services. At the end of the first quarter of 2021, 48 hedge funds in the database of Insider Monkey held stakes worth $2.3 billion in Accenture plc (NYSE: ACN), down from 50 in the previous quarter worth $2.1 billion.

Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), Shopify Inc. (NYSE: SHOP), AMC Entertainment Holdings, Inc., GameStop Corp., and Clover Health Investments, Corp., much like Accenture plc (NYSE: ACN), have been hyped by Redditors in recent weeks.

In its Q1 2021 investor letter, Fiduciary Management Inc, an asset management firm, highlighted a few stocks and Accenture plc (NYSE: ACN) was one of them. Here is what the fund said:

“Even great companies can get too expensive. In early January, we sold our long-standing position in Accenture PLC after the company’s valuation exceeded 30 times next 12 months (NTM) earnings per share (EPS). We originally invested in Accenture at the launch of the FMI International strategy at a valuation below 15 times NTM EPS and held the stock for over ten years. We added to the holding numerous times in the early years, growing the position size to as high as 5.5% in late 2014, before dialing it back in recent years as the valuation became less compelling. It is one of the world’s largest information technology services firms, specializing in helping complex, global businesses navigate disruption, and focusing on next-generation services like digital, cloud, and security. For years, the investment allowed FMI to capture the inherently higher growth of technology-related industries (GDP+) without investing directly in pure “invention-oriented” technology companies. Through Accenture we were able to avoid some of the shortfalls of tech investing: technology obsolescence, short product cycles, and subpar return on invested capital (ROIC). It grew steadily, was solidly profitable, capital-light, and generated high returns, all while maintaining a rock-solid balance sheet. It compounded its business value for many years, outperforming the MSCI EAFE indices by over 450% during our holding period. Unfortunately, the market increasingly recognized the company’s positive attributes, and the stock’s discount to intrinsic value slowly evaporated. Despite our admiration for the business, it exceeded our valuation threshold. We will continue to follow the company closely for future opportunities.”

6. Odey Asset Management

Estimated Gain From Meme Stock Craze: 22%

Odey Asset Management is a London-based hedge fund with a portfolio value of close to $357 million. It is managed by Crispin Odey and focuses on investments in technology, basic materials, and finance stocks. It is placed sixth on our list of 10 hedge funds that profited from Reddit’s meme stock craze. According to a report published by Financial Times in February, Odey European Fund, a subsidiary of Odey Asset Management, registered a gain of 22% in the first two months of this year after losing 30% in the previous year. This gain was attributed to a meme stock rally at the turn of the year that the firm used to its advantage.

Crispin Odey of Odey Asset Management Group

One of the premier holdings of Odey Asset Management is Barrick Gold Corporation (NYSE: GOLD), a Canadian mining company with large stakes in the copper and gold business. At the end of the first quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Barrick Gold Corporation, down from 53 the preceding quarter worth $1.7 billion.

Amid inflation fears, Redditors recommend buying Barrick Gold Corporation, alongside other favorites like Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), Shopify Inc. (NYSE: SHOP), AMC Entertainment Holdings, Inc., GameStop Corp., and Clover Health Investments, Corp..

In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Barrick Gold Corporation (NYSE: GOLD) was one of them. Here is what the fund said:

“Barrick’s recent results have been consistent with our expectations. Barrick has begun inching up the dividend as planned, which should continue increasing absent them finding a large acquisition (they want more copper assets) or a materially lower price of gold. We’d also expect periodic special dividends during stronger gold price environments. At current gold prices we estimate normalized free cash flow at Barrick of over $1.60/share. The company is now about net-debt free. We see plenty of upside and absent a collapse in gold not too much downside. Missing from much of the public discussions about gold, but potentially interesting, is the supply/demand backdrop. As the Wall Street Journal (8/16/20) recently said “gold is amongst the rarest metals in the earth’s crust and much of the easier to get to ore has already been mined. What is left is harder to find and more expensive to extract…” According to the World Platinum Council, it was forecasted that there will be a supply and demand imbalance of 1.2 million ounces globally. The potential macro tailwinds that could add value to an alternate currency like gold including currency concerns, excessive debt and continuing negative real interest rates are still out there. While the shares performed well for the year they were weak in the second half and now stand more attractively priced.”

5. Maverick Capital

Estimated Gain From Meme Stock Craze: 1,600%

Maverick Capital is ranked fifth on our list of 10 hedge funds that profited from Reddit’s meme stock craze. The fund is managed by Lee Ainslie and has a portfolio value of over $10.8 billion. It is based in Texas and concentrates on investments related to the technology and services sectors. Although the firm registered record losses during the GameStop Corp. saga in January, it also made a small profit during the short squeeze. News agency Reuters reports that the firm bought a stake in GameStop Corp. in December 2020 and made gains of 1,600% on the investment within the next few weeks.

Lee Ainslie of Maverick Capital

Maverick Capital holds a large stake in Facebook, Inc. (NASDAQ: FB), the parent company of social platforms like Facebook, Instagram, and WhatsApp. At the end of the first quarter of 2021, 257 hedge funds in the database of Insider Monkey held stakes worth $40 billion in Facebook, Inc., up from 242 in the preceding quarter worth $38 billion.

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Facebook, Inc. (NASDAQ: FB) was one of them. Here is what the fund said:

“We continued to keep our learnings from 2020 in mind during the quarter as we sought to increase the up capture of the portfolio. We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks, including Facebook, while trimming our weighting to stable names, which now represent 47% of the portfolio. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”

4. Ensign Peak Advisors

Estimated Gain From Meme Stock Craze: $7.6 Million

Ensign Peak Advisors is an investment firm run from Utah. It is placed fourth on our list of 10 hedge funds that profited from Reddit’s meme stock craze. The firm has a portfolio value of over $46 billion with investments in technology, healthcare, and industrial goods. In May, news publication Business Insider reported that the fund bought 46,000 shares in GameStop Corp. at the end of the fourth quarter of 2020 that was worth $900,000. In the weeks ahead, this stake became worth more than $8.5 million.

One of the top investments of Ensign Peak Advisors is Microsoft Corporation (NASDAQ: MSFT), the software company that owns the popular operating platform Windows. Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation with 23.9 million shares worth more than $5.6 billion.

In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ: MSFT) was one of them. Here is what the fund said:

“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”

3. Mudrick Capital Management

Estimated Gain From Meme Stock Craze: $200 Million

Mudrick Capital Management is an investment firm headquartered in New York. It has a portfolio value of over $882 million with investments concentrated in the technology and consumer goods sectors. It is ranked third on our list of 10 hedge funds that profited from Reddit’s meme stock craze. The fund is managed by Jason Mudrick and made around $200 million through gains on debt and equity of AMC Entertainment Holdings, Inc., one of the stocks at the centre of the meme stock rallies earlier this year. According to a report in news publication Bloomberg, the fund profited from debt holdings and selling out-of-the-money call options.

One of the biggest holdings of Mudrick Capital Management is Aurora Cannabis Inc. (NASDAQ: ACB), a licensed cannabis producer headquartered in Canada. At the end of the first quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $488 million in Aurora Cannabis Inc., up from 10 in the preceding quarter worth $146 million.

2. Blackrock Group Ltd

Estimated Gain From Meme Stock Craze: $2.4 Billion

Blackrock Group Ltd is placed second on our list of 10 hedge funds that profited from Reddit’s meme stock craze. The fund is based in London and has a portfolio value of over $210 billion. The fund concentrates on investments in the finance, healthcare, and technology markets. Regulatory filings showed at the end of last year that Blackrock owned 9.3 million shares in GameStop Corp. worth around $173 million. As the video game retailer went on a record rally that saw share price rise by 700% in the next few weeks, this stake became worth over $2.5 billion. News agency Reuters reports that the fund made $2.4 billion in the process.

A top holding of Blackrock Group Ltd is Apple Inc., a technology company based in California. At the end of the first quarter of 2021, 127 hedge funds in the database of Insider Monkey held stakes worth $130 billion in Apple Inc., down from 146 in the preceding quarter worth $142 billion.

In its Q1 2021 investor letter, Distillate Capital, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ: AAPL) was one of them. Here is what the fund said:

“Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”

1. Senvest Management LLC

Estimated Gain From Meme Stock Craze: $700 Million

Senvest Management LLC is a hedge fund based in New York. The portfolio value of the fund is over $3 billion, according to the latest filings. The fund focuses on investments in the technology and services sectors of the economy. In January this year, at the height of the GameStop Corp. short squeeze, the fund was the fourth-largest shareholder in the video game retailer, owning about 5 million shares. It sold the stake, according to a report in The Wall Street Journal, and gained close to 40%, making a profit of $700 million. The fund is ranked first on our list of 10 hedge funds that profited from Reddit’s meme stock craze.

One of the top holdings of Senvest Management LLC is Marriott International, Inc. (NASDAQ: MAR), the company that owns and runs hotel, residential, and timeshare properties across the world. At the end of the first quarter of 2021, 58 hedge funds in the database of Insider Monkey held stakes worth $3 billion in Marriott International, Inc., the same as in the previous quarter worth $3.4 billion.

In its Q1 2021 investor letter, LRT Capital Management, an asset management firm, highlighted a few stocks and Marriott International, Inc. (NASDAQ: MAR) was one of them. Here is what the fund said:

“We are also long shares of Marriott International, Inc. (MAR). Our investment thesis with respect to Marriott is essentially the same as with Hilton: excellent business economics, a consolidating industry and a good track record of capital allocation. Shares of Marriot are up 12.39% year-to-date.”

You can also take a peek at 10 Reddit’s WallStreetBets Meme Stocks Hedge Funds are Piling Into and 10 Biggest Hedge Fund Casualties of Reddit WallStreetBets’ Short Squeezes.

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