AMC Entertainment Traders Shrug Off Latest Hedge Fund Short

Retail investors have rallied around several stocks in 2021 with GameStop Corp GME and AMC Entertainment AMC the biggest names.

A battle between short sellers and retail traders has been one of the biggest 2021 stock market stories and looks set to continue, with funds continuing to bet against so-called “meme stocks.”

What Happened: London hedge fund Odey Asset Management is the latest fund to go short shares of AMC and take on retail traders, according to a Financial Times report.

Odey manages $4.1 billion in assets. James Hanbury, who manages around $1.5 billion of the assets, told investors in a letter the firm is short AMC.

Hanbury cites AMC being a “compelling short opportunity” created by retail investors who have “created some major distortions.”

The short call from Odey follows Iceberg Research, which said it was short AMC shares in early July.

“We are short $AMC. Fundamentals are obvious, the pump seems increasingly shaky,” Iceberg Research tweeted.

Related Link: AMC Entertainment Tops Q2 Trends For Millenials And Gen Z

Why It’s Important: Betting against retail investors by shorting favorite stocks has proved costly for some hedge funds.

Many of the funds that shorted GameStop shares saw major losses in the first quarter of 2021 and have shut down completely.

AMC Price Action: AMC shares gained 12.3% Thursday, closing at $33.51. AMC shares are up over 1,300% year-to-date. 

Photo: courtesy of AMC. 

See also: How to Buy AMC Stock