‘Hedge fund humiliation even if short selling’… US Citron “I’m not going to release a sale report anymore”

Input 2021.01.29 23:22 | Revision 2021.01.30 00:08

Hedge funds, which became targets of US hedge funds, incurred enormous losses as individual investors concentrated on buying US GME stocks, in effect declared surrender.

On the 29th (local time), Citron Research, a hedge fund specializing in short selling in the US, announced on its official Twitter account that “we will stop short selling research” and that “Citron Research will no longer publish a’short report’.” “We will focus on providing individual investors with the opportunity to earn a multi-bagger in the long run,” he added.

It means that instead of short selling, it focuses on recommending long (buy) positions. It also means that Citron Research is changing its business direction in the opposite direction after 20 years of publishing its short report.

Andrew Left, CEO of Citron Research, posted a video on YouTube on the same day with this announcement.

Earlier, Citron Research announced that it would make a major announcement at 9 am US time on the same day. Regarding this, individual investors said, “Isn’t Citron Research making a surrender?” This was as expected. However, it is not a’bankruptcy declaration’ as expected.

Citron Research recently reportedly lost a lot after fighting an ant (individual investor) for GameStop, a video game retailer.

Gamestop, which was a forgotten stock, emerged as the hottest stock in the United States amidst the short-sell hedge fund and the buy and sell battles of American ants. As GameStop’s stock price, which had been around $4 until August of last year, soared to $40 on the 20th, Citron Research attacked, saying, “Gamestop is a failed company.” As a result, individual US investors were angry with the online community Reddit’s stock discussion room called’Wall Streetbets’.

Since then, individual investors, led by Wall Street Betz users, have concentrated on buying Gamestops that hedge funds are trying to sell short. It is a so-called’war against short selling’. As a result, the stock price of GameStop, which was only 19.95 dollars on the 12th, soared to 1641.85% in 15 days to 347.51 dollars on the 27th. On the 27th, the stock price surged 134.83% in one day, but on the 28th, the very next day, the stock trading app’Robin Hood’, a favorite of American ants, stopped trading GameStop and plunged 44%.

When the’short squeeze’ phenomenon appeared, Wall Street and domestic stock prices said, “If the price of the stock you were trying to short sells rises and the hedge fund loses, you have to sell other stocks forcibly, which could cause a chain of decline. “An analysis came out.