In this article, we discuss the 5 hedge funds that profited from Reddit’s meme stock craze. If you want to read our detailed analysis of these hedge funds, go directly to the 10 Hedge Funds that Profited from Reddit’s Meme Stock Craze.
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. (NYSE: GME) 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. (NYSE: GME) in December 2020 and made gains of 1,600% on the investment within the next few weeks.
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. (NASDAQ: FB), up from 242 in the preceding quarter worth $38 billion.
“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.”