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HomeTechnologyGamestop rally: Youtuber Roaring Kitty wins millions, Melvin Capital loses billions

Gamestop rally: Youtuber Roaring Kitty wins millions, Melvin Capital loses billions

Roaring Kitty is the name of Keith Gill’s Youtube channel, who is considered by many to be the messiah of the Gamestop movement. (Screenshot: t3n / Youtube)

The YouTuber Keith Gill aka Roaring Kitty gives financial and investment tips on his channel. Since August 2020, he had recommended buying Gamestop stocks, calling them undervalued. The rally made him a millionaire.

A 34-year-old family man from the US state of Massachusetts is allowed to contribute to the course rally for the Gamestop -Share to be considered. As the Daily Mail reports, Keith Gill has been recommending Gamestop shares on his YouTube channel Roaring Kitty since August at the latest.

Keith Gill, Wallstreetbets-Messiah

In addition, he posts screenshots of his account on Reddit at irregular intervals, with which his audience can monitor the course of his game stop Understand investments. They show that his $ 755,000 investment is now worth $ 46 million, after a brief spike of $ 48 million.

This means that the Robinhood traders, who organize themselves via the Reddit forum Wallstreetbets, are a role model for what is possible. Some refer to him as the messiah of the new financial world. According to estimates by the Daily Mail, around half of the total of 13 million Robinhood users took part in the Gamestop rally.

hedge fund Melvin Capital loses 53 percent

While Gill, who is a full-time financial advisor at an insurance company, and those Those who follow his investment tips on Roaring Kitty, i.e. make massive profits with their Gamestop shares, have had to accept heavy losses.

The hedge fund Melvin Capital may have suffered the greatest damage known to date. He had bet on falling prices via short sales and had been caught off guard by the Robinhood traders.

Like that The Wall Street Journal reports that Melvin Capital posted a 53 percent loss of its holdings in January 2021. After the Gamestop rally, only less than half of a starting volume of 12.5 billion dollars was left.

In a spectacular rescue operation, major investors, including the hedge fund titans Steven Cohen and Ken Griffin, pumped 2.75 billion dollars into Melvin Capital, so that the fund is currently back with around eight billion dollars. In the course of the action, Melvin Capital is said to have freed its portfolio of many risks.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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