Steve Cohen has become the latest victim of the “Reddit Rally.”
The billionaire Mets owner’s hedge fund Point72 Capital is down more than 10 percent since the start of the year because of the unprecedented short squeeze on stocks like GameStop and AMC Entertainment, industry insiders told The Post.
That creates a sizable hole for Cohen to climb out of in the remaining 11 months of 2021. Nevertheless, fans of the Amazins’ should not get too concerned that their beloved new boss is suffering from a Flushing curse.
Sources tell The Post that most of Cohen’s pain is coming from his investment in Melvin Capital, a fund run by his former protege Gabe Plotkin, which became the first high-profile victim of the social media-fueled market revolt against hedge funds who make billions by shorting stocks
Plotkin was reportedly down by 30 percent on Tuesday when Cohen and fellow hedge fund kingpin Ken Griffin of Citadel moved to bail him out with an emergency $2.75 billion cash infusion.
“If he’s bailing out Plotkin I’m not too concerned for him,” a fellow hedge fund manager said of Cohen. “Plotkin didn’t have adequate risk management for something he couldn’t have seen coming and Steve got hit by a guy who made him billions two years ago. It sucks but he’ll get over it.”
As recently as Wednesday, Cohen owned a relatively small 26,878-share stake in GameStop, according to Bloomberg data.
Point72 returned about 17 percent in 2020, but the battle with retail traders hellbent on toppling billionaire hedge fund managers from their ivory tower looks far from over.
Users on the Reddit board “WallStreetBets” have openly targeted Cohen and his fund on the platform with one taunting “Mets owners and losing all their money in the stock market. Name a more iconic duo.”
Cohen appeared to lash out publicly at his antagonists as the short squeeze tightened its grip.
“Rough crowd on Twitter tonight,” he tweeted Tuesday evening. “Hey stock jockeys keep bringing it.”
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