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YOLO Trading: Riding with the Herd During the Gamestop Episode
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Lyócsa, Štefan; Baumöhl, Eduard; Vŷrost, Tomáš Working Paper YOLO trading: Riding with the herd during the GameStop episode Suggested Citation: Lyócsa, Štefan; Baumöhl, Eduard; Vŷrost, Tomáš (2021) : YOLO trading: Riding with the herd during the GameStop episode, ZBW - Leibniz Information Centre for Economics, Kiel, Hamburg This Version is available at: http://hdl.handle.net/10419/230679 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights -
October 1, 2001
“Don’t mistake activity for achievement.” –John Wooden April 22, 2021 «Title» «First_Name» «Last_Name» «Job_Title» «Company» «Address1» «Address2» «City» «State_» «Postal_Code» Dear «Salutation»: If Hollywood made a movie based on the events that drove financial markets during 1Q 2021, most viewers would find the plotline too farfetched. (Then again, the same could probably be said for most of 2020’s major headlines!) The year started out with the Georgia senate runoff races securing Democratic control of Congress (via the Vice President’s Senate tiebreaking authority), paving the way for more fiscal stimulus than would have occurred with divided government. Then, on January 6, protesters in support of then-President Donald Trump stormed the Capitol as Congress met to confirm President-elect Joe Biden’s election victory. The protests turned violent, causing lawmakers to shelter in place. Ultimately more than 140 people were injured, and 5 people died, including a police officer. And all this occurred within the first seven days of the year! Then the Reddit/WallStreetBets crowd burst on the scene, with nonprofessional investors informally banding together to buy stocks that in many cases were heavily shorted (presumably by hedge funds), causing a “short squeeze” in certain stocks, most notably mall-based video game retailer GameStop. At one point during January, GameStop shares had advanced 1,741% for the year! This short squeeze destroyed some hedge funds and left former star hedge fund manager Gabe Plotkin of Melvin Capital nursing a 53% loss for January, causing him to seek a capital injection from his former boss, Steven Cohen, and Citadel Securities’ Ken Griffin. -
Introduction: the Carried Interest Loophole 7
Simply stated, the carried interest loophole is the mistreatment of hedge fund and private equity fees as capital gains, rather than ordinary income. CONTENTS 3 | Introduction: the Carried Interest Loophole 7 | What is the Carried Interest Loophole? 10 | The Fight to Hold New Jersey Billionaires Accountable 11 | Meet The Billionaires – MFP Investors, Michael Price – Omega Advisors, Leon Cooperman – Redwood Capital Management, Jonathan Kolatch – Glenview Capital, Larry Robbins 19 | Methodology 22 | Who Are the Hedge Clippers? 23 | Press + General Inquiry Contacts INTRODUCTION: THE CARRIED INTEREST LOOPHOLE Understanding what the Instead, with last year’s new federal tax law, Trump and Republicans chose to increase the trillions of Carried Interest Loophole dollars going to billionaires and corporations while is and why Trump and threatening vital investments in housing, education 2 Congressional Republicans and healthcare. During his presidential campaign, President Donald kept it alive in the Federal Trump pledged to close the loophole, saying that “the Tax Law. hedge fund guys are getting away with murder...I have hedge fund guys that are making a lot of money The carried interest loophole is that aren’t paying anything.” among the most costly and wasteful Now, of course, many of those “hedge fund guys” are tax loopholes out there. in the Trump administration or otherwise advising or funding Trump. It’s a massive giveaway to hedge fund and private equity firms that costs federal taxpayers $18 billion each year. Here’s how it works: These firms charge their investors fees for managing their money, but rather than classifying this as income they deem it carried interest, allowing them to pay lower tax rates. -
The Uptick Rule 3.96 Background Briefing –Is A
defending a market attack - the uptick rule 3.96 CLEARED FOR RELEASE 07/16/2020 [Economic Battle PlanTM points: 100) Background Briefing –Is a planned stock market attack in the works? What we must do now to stop it! A stock market crash can determine an election’s outcome. It has happened before…. On September 11, there was a naked short-selling attack on Lehman Brothers, triggering the worst market collapse since the Great Depression. It was done right before the 2008 election and it literally shifted the outcome. The stock market has been a strength for the Trump administration, but there are indications history could repeat itself soon. Economic Warfare expert Kevin Freeman reviews how the stock market can be used as a secret weapon to influence the 2020 Presidential election. Statistically, the stock market performance in the last three months before an election determines who wins the White House 87% of the time. July through November is the critical point in the financial markets and our adversaries recognize it. Even George Soros warns Trump of a potential economic doom before election. In this briefing Kevin Freeman explains potential attacks adversaries have considered and a simple rule that could prevent a timed economic attack on the US stock market. It is critical action is taken to reinstate this rule now! Your Mission: To understand the economic tactics adversaries have used against the US in the past and to help avoid another economic attack on the US stock market. Also, to help us take on Wall Street to: 1. Reinstate the Uptick Rule 2. -
Case 3:21-Cv-10264-MGM Document 1 Filed 02/16/21 Page 1 of 36
Case 3:21-cv-10264-MGM Document 1 Filed 02/16/21 Page 1 of 36 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS CHRISTIAN IOVIN, individually and on behalf of all others similarly situated, Plaintiff, C.A. NO. _______________ v. JURY TRIAL DEMANDED KEITH PATRICK GILL, MML INVESTORS SERVICES, LLC, AND MASSACHUSETTS MUTUAL LIFE INSURANCE CO. Defendants. CLASS ACTION COMPLAINT Case 3:21-cv-10264-MGM Document 1 Filed 02/16/21 Page 2 of 36 TABLE OF CONTENTS I. OVERVIEW OF WRONGDOING .....................................................................................1 II. THE PARTIES.....................................................................................................................3 III. JURISDICTION AND VENUE ..........................................................................................3 IV. FACTS .................................................................................................................................4 A. The Real Keith Gill. .................................................................................................4 B. MML’s and MassMutual’s Obligations To Supervise.............................................6 C. Gill’s Use of Social Media Undermines the Integrity of, and Manipulates, the Market for GameStop Shares. ............................................................................6 D. Plaintiff’s GameStop Options Transactions...........................................................17 V. CLASS ALLEGATIONS ..................................................................................................18 -
Teledyne and Dr. Henry Singleton, Case Study in Capital Allocation
Teledyne and Dr. Henry Singleton, Case Study in Capital Allocation Teledyne and a Study of an Excellent Capital Allocator, Mr. Dr. Henry Singleton Case Study Edited by John Chew ([email protected]), Telephone: (203) 622-1422 INTRODUCTION Many students of investing know about the great investment record of Warren Buffett but few even know of the man Buffett called one the greatest capitalists and capital allocators of all-time, Dr. Henry Singleton, who built Teledyne Corporation from scratch during 1960 to 1986. The best investors are avid students of history of the market, companies, and great investors. The more you learn from others, the less expensive your own tuition will be. Not to study the Teledyne story and the managerial success of Dr. Henry Singleton and his management teams would be tragic. Excerpts are from the book, Distant Force, A Memoir of the Teledyne Corporation and the Man who Created it by Dr. George A. Roberts (2007). Dr. Henry Singleton was more than just a great capital allocator, he was a visionary, entrepreneur, and excellent business person who believed that the key to his success was people—talented people who were creative, good managers and doers. Once he had those managers in place, he gave them complete autonomy to meet agreed upon goals and targets. He and his co-founder and initial investor, George Kozmetsky, bootstrapped their investment of $450,000 into a company with annual sales of over $450 million, an annual profit of some $20 million, and a stock market value of about $1.15 billion. An investor who put money into Teledyne stock in 1966 achieved an annual return of 17.9 percent over 25 years, or a 53x return on invested capital vs. -
Volume 8, Issue 3 (Spring, 2021)
The Interdisciplinary Research Journal Volume 8, Issue 3 (Spring, 2021) Issue Highlights: • #MeToo, Body, Desire & Society • A.I. and the Legal Dimension • Hip Hop and Gandhi • Gamestop, Reddit & Hedge Funds • Profiteering from Publication Error, Fraud & Misconduct ISSN 2053-9665 Exchanges: The Interdisciplinary Research Journal Volume 8, Issue 3 (Spring 2021) ISSN 2053-9665 Published by The Institute of Advanced Study, Zeeman Building University of Warwick, Coventry, Warwickshire, CV4 7AL, UK Editor-in-Chief Dr Gareth J Johnson ([email protected]) Exchanges is a scholar-led, peer-reviewed, diamond open access, interdisciplinary, online-only journal dedicated to the publication of high-quality work by researchers in all disciplines for a broad scholarly audience. No author fees or subscription charges are levied, and contributors retain their author rights. Since 2013, the title has attracted innovative research articles, critical essays and interviews from emerging domain experts and early career researchers globally. The title also publishes scholarly work by practitioner authors and independent scholars. A Managing Editor-in-Chief based at the University of Warwick oversees development, policy and production, while an international Editorial Board comprised of early career researchers provide advice and practically contribute to editorial work. Associate editors are recruited to participate in producing specific special themed issues. Exchanges usually publishes two issues annually, although additional special themed issues -
02|2021 Efl Insights
Q-02_2021_efl-News_09 30.06.21 11:47 Seite 1 efl insights 02|2021 An efl – the Data Science Institute Publication Data Democratization in Asset Management Jump on the Hype – German Retail Investors and the Gamestop Frenzy Phish Me If You Can: Insights from an Eye-Tracking Experiment Is Platform Lending Just a Flash in the Pan? Q-02_2021_efl-News_09 30.06.21 11:47 Seite 2 Impressum Redaktion Prof. Dr. Peter Gomber Dr. Jascha-Alexander Koch Herausgeber Prof. Dr. Wolfgang König Vorstandsvorsitzender efl – the Data Science Institute e. V. Prof. Dr. Peter Gomber Stellvertretender Vorstandsvorsitzender efl – the Data Science Institute e. V. Kontakt [email protected] www.eflab.de Gestaltung Novensis Communication GmbH Bad Homburg 2. Ausgabe, 2021 Auflage: 200 Stück (Print) / 2.000 Stück (E-Paper) Copyright © by efl – the Data Science Institute e. V. Printed in Germany ISSN 1866-1238 Q-02_2021_efl-News_09 30.06.21 11:47 Seite 3 efl | insights 02 | 2021 03 Editorial Data Democratization in Asset Management Dr. Markus Lohmann Markus Lohmann Chief Technology and Data Officer Allianz Global Investors “Data is the new oil” is the claim often used to Data Democratization as the Current Using Democratized Data Effectively Requires the products function), the main task for own- underpin the importance of data for business Paradigm Strong Governance and Architectures ers now is to ensure adequate usage outside progress. In fact, in May 2017, The Economist their function. Like oil, raw data is not valuable reported that the world’s most valuable At Allianz Global Investors, we have turned Data governance delivers most of the answers. -
Jonathan Boyar:Welcome to the World According to Boyar, Where
[00:00:00] Jonathan Boyar:Welcome to the World According to Boyar, where we bring top investors, best-selling authors and business leaders to show you the smartest ways to uncover value in the stock market. I'm your host, Jonathan Boyar. Today's guest is Leon Cooperman, one of the most successful money managers in history. If I went through his full professional biography we would run out of time. I'll just go through the highlights. Leon started [00:00:30] his investment career at Goldman Sachs, where he eventually became chairman and CEO of Goldman Sachs asset management. Prior to that he ran the firm's research department. For nine consecutive years, he was voted the number one portfolio strategist in Institutional Investor magazine. At the end of 1991, Leon retired from Goldman to start his own investment management business Omega Advisors which he ran for 27 years before converting it to a family office. At its height Omega managed [00:01:00] more than $10 billion of client funds. Mr. Cooperman and his family are extremely philanthropic. He and his wife, Toby, are signers of The Giving Pledge and have generously made substantial gifts to both Columbia where Leon received his MBA, and Hunter college where he obtained his undergraduate degree. The Cooperman's also made the largest donation in St. Barnabas Medical Center history as well as countless other major donations to help those less fortunate. Leon, welcome to the show. Leon Cooperman: Thank you, [00:01:30] Jonathan. I'm getting so damn old. -
Trading in the Time of Covid: a Robinhood Bromance
TRADING IN THE TIME OF COVID: A ROBINHOOD..., 28 No. 2 PIABA B.J. 159 28 No. 2 PIABA B.J. 159 PIABA Bar Journal 2021 Melanie Cherdack a1 Copyright © 2021 by Melanie S. Cherdack, All Rights Reserved. TRADING IN THE TIME OF COVID: A ROBINHOOD BROMANCE Introduction In ancient times, circa 1960, an investor would dial his stockbroker on a rotary phone, place an order to purchase shares in IBM stock, the broker would call his trader on the floor of the NYSE, the trader would make a bid to the specialist for the shares, the buy order would be matched with an order to sell, the trade would be recorded with a pencil and a scrap of paper, the order would be filled, the stock certificate would be sent through the mail, and the investor would hold the shares for decades. Not so anymore. Every aspect of investing has changed. The types of securities sold, the proliferation of exchanges, and the disparate trading systems have altered the ways in which the business of securities trading is conducted. 1 And, the era of algorithms and electronic high speed trading, 2 coupled with individual investors' ease of access to the markets through apps and trading platforms, has drastically changed the nature of trading securities. With that, the profile of the individual investor has also morphed. Suffice it to say, “Its not your father's stock market anymore.” An App Is Born The shift to discount brokerage firms and internet trading through platforms like E*Trade and Charles Schwab opened the markets to include a *160 new breed of individual investor seeking to make investments on their own without the use of a traditional broker. -
FACT SHEET – Reddit, Robinhood, Gamestop & Rigged Markets
– FACT SHEET – Reddit, Robinhood, GameStop & Rigged Markets: The Key Issues for Investigation February 1, 20211 The Reddit-fueled and Robinhood-facilitated frenzied trading of GameStop and a number of other public companies have raised serious investor protection and market integrity issues. Indeed, it has exposed a vast predatory ecosystem underpinning too much of modern finance, including the anti-retail trader, anti-buy side practices enabled by a rigged market structure. These events have, once again, also exposed the need to investigate the conduct of numerous financial firms and market intermediaries, including brokers, hedge funds, dealers, short sellers and Wall Street’s megabanks. And it calls for renewed scrutiny into trading practices that have become ingrained in the markets, including leverage, liquidity, derivatives, fragmentation, complexity, interconnectedness, high frequency trading, the gamification of retail trading, market manipulation and conflicts of interest. The equities markets are supposed to facilitate price discovery and allocate capital to its optimal use through fair, orderly, and efficient trading. Recent events related to Reddit, Robinhood, GameStop and other stock trading unrelated to any fundamental, company specific information or rational basis risk shattering investors’ trust and confidence both in the markets and in the regulators who are supposed to protect those markets and their participants. Those regulators have very powerful investigative tools and have full authority to stop and punish fraud, market manipulation, false and misleading statements as well as the full panoply of disclosure violations. Contrary to much self-interested spin, this is not a game. There are lots of real people who are going to lose billions of dollars in connection with this market frenzy and not just hedge funds and other sophisticated financial firms shorting particular stocks. -
Received by NSD/FARA Registration Unit 02/01/2021 11:58:35 AM
Received by NSD/FARA Registration Unit 02/01/2021 11:58:35 AM 01/29/21 Friday This material is distributed by Ghebi LLC on behalf of Federal State Unitary Enterprise Rossiya Segodnya International Information Agency, and additional information is on file with the Department of Justice, Washington, District of Columbia. Is Dogecoin Next? Robinhood Blocks Skyrocketing Cryptocurrency Championed by Online Traders by Morgan Artvukhina While there are many superficial similarities between the GameStop and Dogecoin online investment frenzies, Wall Street stocks and cryptocurrencies are valued using very different systems. The cryptocurrency Dogecoin is experiencing an unparalleled rise in value amid a push by online investors trying to rally purchases. In response, the trading app Robinhood halted instant deposits for crypto purchases; however, the comparisons with the GameStop affair end there. Dogecoin was begun as a joke in 2013, based on then-popular internet memes about Shiba Inu dogs dubbed “doge.” However, the cryptocurrency amassed a sort of cult following over the years. On Wednesday, Dogecoin’s value began to rise quickly, climbing more than tenfold by Thursday night from $0,007 per coin to $0.78 per coin before declining again. As CNBC reported, the explosion in value was driven by a subreddit called SatoshiStreetBets, named after Satoshi, the mythical founder of bitcoin. Bitcoin has also seen its value spike in recent days amid a flurry of buying. The spike began amid another buying storm cooked up by amateur investors on a Reddit message board site; small-time investors on the WallStreetBets subreddit bought large numbers of GameStop and other stocks that Wall Street investors had taken out substantial short positions on, betting the stocks would soon decline in value.