There was a real winner of GameStop… ’78 billion won jackpot’ who?

It was evaluated that the game stop was a three-way battle between Robin Hood, short-selling institutional investors, and general institutional investors.

And the biggest winner here is general institutional investors, the Wall Street Journal (WSJ) reported on the 3rd (local time).

WSJ said that in this GameStop investment, general institutional investor, US hedge fund, Senvest Management, made the most money.

Sunbest Management is reported to have earned 700 million dollars (about 780 billion won) by investing in GameStop. Morgan Stanley’s Inception Fund also invested in GameStop, and its return exceeded 30% last month. This is the number one US mutual fund return.

The reason they recorded such a high rate of return is that they chose a buy strategy, unlike institutional investors who sell short. Moreover, the reason for their investment is last year, not this year when the trading battle between Robin Hood and short selling institutional investors was in full swing, so they bought at a lower price than the recent stock price.

WSJ analyzed that Sunbest Management has focused on GameStop since January last year. At that time, some experts on Wall Street gave a pessimistic evaluation, suggesting Gamestop’s investment opinion as’sell’. However, through corporate analysis, Sunbest Management found that major hedge funds are making short-selling investments in GameStop.

In addition, if a gamestop is purchased, a short squeeze (a phenomenon in which short-selling investors repurchase stocks at higher prices to reduce losses when stock prices rise) is possible.

However, if the business structure of GameStop is switched from offline to online, it is premised that the stock price will be upside and it will be able to withstand short selling attacks. Sunbest Management’s judgment was correct. The company bought the average unit price of GameStop shares for less than $10 per share until October last year. The stake was over 5%. The result was successful.

Morgan Stanley’s Inception Fund is similar to Senvest Management.

As of the end of September of last year, the Inception Fund announced that it had 340,000 shares of GameStop. And last January, it surpassed 30% of its return, making it the best performance among American mutual funds.

[이상규 매경닷컴 기자 [email protected]]
[ⓒ 매일경제 & mk.co.kr, 무단전재 및 재배포 금지]