One of the world’s largest hedge funds bought a significant stake in GameStop just weeks before the stock price soared 400% in the latest “meme stock” rally, a regulatory filing revealed on Wednesday. This was revealed in the documents.
Renaissance Technologies, a quantitative firm founded by legendary investor Jim Simmons, who passed away last week, bought just over 1 million shares of GameStop stock during the quarter that ended in March, according to securities filings.
Assuming no changes to the position, GameStop shares would be worth about $33.5 million through Wednesday, up from about $13 million at the end of the previous quarter.
The struggling video game retailer’s stock price soared 400% to Tuesday’s high, boosted largely by the resurgence of “Roaring Kitty.”
The retail day trader, whose real name is Keith Gill, played a leading role in the meme stock craze of 2021. At the time, mom-and-pop investors poured into companies like GameStop and AMC to squeeze out short sellers.
Rentech also increased its stake in the struggling movie theater chain by 78% to about 8.7 million shares during the first quarter, according to the filing.
The position was worth more than $46 million as of Wednesday’s trading, up from about $32 million last quarter.
On Wednesday, the rally in meme stocks stalled, with GameStop and AMC plunging 19% and 20%, respectively.
Nevertheless, this week’s unexpected rally could still result in huge gains for Rentech.
The company uses algorithms to make lightning-fast trades, which can result in big changes to your stock portfolio every quarter.
Simmons, a leading market expert and mathematician, passed away last Friday at the age of 86.
Gill, who also goes by the nickname “DeepF-kingValue” on Reddit, shared a series of memes on X earlier this week that reignited interest in the struggling company.
The posts, his first public interaction since 2021, included a meme of a video game player slouching in a chair and a series of popular TV shows and movies, including Marvel’s “The Avengers” and “Breaking Bad.” Contains movie clips.
The X account @TheRoaringKitty continued posting movie clips on Wednesday, but Gill has yet to personally reveal his next move.
with post wire
