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

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. (NYSE: GME) 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. (NASDAQ: MAR), 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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