Orlando Gemes’ Post

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Founding Partner, Chief Investment Officer at Fourier Asset Management LLP

Dumb Money the movie: sometimes you learn important lessons from unusual or unexpected sources. I found this move to not just be very enjoyable, but also extremely thought-provoking. As we continue to experience the powerful upward force of the magnificent seven, it is worth remembering and considering the extraordinary ride of GameStop. This situation is notable for the involvement of two of the greatest minds in hedge funds, retail investors, trading platforms offering leverage, derivatives, chat rooms, and a company that either loses money or just breaks even. From my perspective, it is a perfect example of the irrational and inefficient nature of markets. This is not a point of judgment, but rather an acknowledgment that in financial markets one should expect the unexpected. It is also fascinating that the stock rose like a phoenix from $4.71 on the 1st of December 2020 to $81.25 on the 25th of January 2021. Over the previous six months, volumes in the stock had risen exponentially. Since this period, volumes have slowly shrunk back to the levels of early 2020, while the stock has ground lower, but still trades at $14.92. Finally, this story highlights the extraordinary skill of short sellers more generally. #hedgefunds #retailinvestors #shortselling

DUMB MONEY - Official Trailer (HD)

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