AMC) Short-selling hedge fund Odey Asset Management suffered massive loss in the past month


AMC Entertainment (NYSE: AMC), the distressed former movie theater chain that has seen a dramatic turnaround in fortunes amid a breathtaking rally in retail stock prices, continues to inflict crippling damage on its critics.

Against this backdrop, hedge fund Odey Asset Management has become one of the biggest casualties of recent times as AMC Entertainment shares maintain their inexorable bullish trajectory.

AMC Entertainment’s (NYSE: AMC) NFT Strategy Has Become Much Clearer

As a reminder, the London-based hedge fund had reported a substantial short position in AMC Entertainment in August. Prior to this disclosure, the fund had made a kill on its bearish bet as the AMC stock price plummeted from $ 57 to $ 37 in July.

However, the tables appear to have turned on Hanbury Odey, who manages the company’s LF Brook Absolute Return fund and currently oversees around $ 1.5 billion in assets. As an illustration, shares of AMC Entertainment have now passed the price point of $ 50 and are up about 70% since Hanbury Odey revealed his bearish bet on AMC.

So how many losses has Odey Asset Management suffered? Well, Hanbury previously said his short position in AMC was one of his biggest winners, providing a significant contribution to the LF Brook fund’s 3.7% return at the start of August. However, with AMC writing off almost all of its losses in July, the fund is now at risk of losing its star player.

Of course, Odey Asset Management isn’t the first prominent victim of today’s retail craze in even stocks like GameStop and AMC Entertainment. In January 2021, Melvin Capital was forced to request a bailout after its short position on GameStop exploded.

We noted in an article yesterday that, according to the S3 Partners tab, GameStop short sellers lost an additional $ 100 million in August, bringing their cumulative losses to around $ 6.5 billion. If the current rally in AMC Entertainment shares continues, its critics are likely to suffer the same fate.

Loopring (LRC) set to break current record if the project’s alleged partnership with GameStop’s NFT platform (GME) materializes

With AMC Entertainment and GameStop both inextricably linked by today’s retail craze, the two companies are now considering a formal partnership. Namely, Fox Biz’s Liz Claman has now tweeted that AMC Entertainment CEO Adam Aron has contacted GameStop for a possible tie-up:

While the exact nature of this partnership is still uncertain, we speculated yesterday that the merger could involve GameStop’s recent push into the non-fungible token (NFT) arena. GameStop has now activated a website for NFTs which references gamers, creators and collectors, thus indicating an inbound ecosystem to respond to the gaming community. A fantastic way for GameStop and AMC Entertainment to work together would be for the movie chain to integrate with GameStop’s upcoming NFT platform, allowing full interoperability and portability. For example, spectators should be allowed to exchange their tickets for NFTs on the GameStop platform and vice versa. This approach would not only create additional demand for GameStop’s NFT platform, but also allow AMC Entertainment to capitalize on this growing phenomenon, thus creating a win-win formula in the process.

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