Justin Sullivan
Billionaire investor Carl Icahn is said to have a large short position in GameStop (NYSE:GME) that he started to accumulate in January 2021 at the height of the meme-stock frenzy for the video-game retailer.
Icahn began building his short when GameStop (GME) neared its high of $483 in January 2021 and still has a large bet that the retailer’s shares will drop, according to a Bloomberg report, which cited people familiar. The exact size of the position wasn’t known
GameStop’s (GME) shares have plunged 71% from their high last year and have drop 32% this year. GameStop, which announced a four-for-one stock split earlier this year, has short interest of 21%.
Icahn, best known as an activist investor who recently disclosed a stake in beverage can maker Crown Holdings (CCK), is faring much better than other funds that shorted GameStop (GME). Former hedge fund Melvin Capital shut down earlier this year at least partly after it was pummeled by the GameStop (GME) short squeeze last year.
Icahn is not just betting that GameStop will fall. Earlier this month he said he still believes that we are in a bear market and doesn’t expect inflation to go away in the near term. He’s also has a short bet against the S&P 500.
Image and article originally from seekingalpha.com. Read the original article here.