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

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. (NYSE: AMC), 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. (NASDAQ: ACB), up from 10 in the preceding quarter worth $146 million.