Missing Out On Massive AMC Stock Surge, Mudrick Capital Says Has 'No Regrets' On Selling: NYPost

Hedge fund Mudrick Capital said it does not regret having missed out on the massive surge in the stock of movie theatre chain AMC Entertainment Holdings Inc. AMC on Wednesday, the New York Post reported, citing sources.

What Happened: One of the people close to the hedge fund told the New York Post that Mudrick’s brief flirtation with AMC Entertainment’s stock is “history” and the hedge fund had “no regrets.”

It was reported on Tuesday that Mudrick Capital sold its entire $230 million holding in AMC Entertainment just hours after buying into the high-flying stock.

See also: How to Buy AMC Stock

Mudrick decided to cash out after it determined that AMC Entertainment's shares are “overvalued” and as it values businesses based on fundamentals. However, the hedge fund was able to sell the shares it bought at a significant profit.

See Also: Own AMC Shares? Get Rewarded With A Free Popcorn Under New Investor Connect Program

Why It Matters: AMC Entertainment’s shares skyrocketed 95% in Wednesday’s trading as retail investors pile into Reddit-favorite stocks and attempt a new short squeeze.

In the process, AMC overtook another Reddit-favorite and gaming retailer GameStop Corporation GME in terms of market capitalization.

Mudrick's purchase of 8.5 million AMC Entertainment shares for $230.5 million meant the shares were priced at $27.12 per share. Assuming the shares were sold at Wednesday’s closing stock price of $62.55 per share, Mudrick could have raked in a profit of more than $300 million.

Mudrick had previously invested in AMC as it navigated a difficult period during the COVID-19 pandemic that forced the closure of its theatres.

Price Action: AMC Entertainment shares closed 95.2% higher in Wednesday’s trading session at $62.55.

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Photo by Tojosan on Flickr