Jim Simons-founded hedge fund boosted stake in GameStop before 400% surge in meme-stock rally: filing
One of the top hedge funds in the world bought a sizable stake in GameStop just a few weeks before shares surged as much as 400% in the latest “meme stock” rally, a regulatory filing showed Wednesday.
Renaissance Technologies, the quant firm founded by legendary investor Jim Simons, who died last week, bought just over 1 million shares of GameStop during the quarter ending in March, according to the securities filing.
Assuming no changes in the position, the GameStop stake would be worth nearly $33.5 million through Wednesday — up from a value of about $13 million as of the end of last quarter.
The struggling video game retailer’s stock spiked 400% at its Tuesday high — boosted mainly by the return of “Roaring Kitty.”
The retail day trader, whose real name is Keith Gill, played a leading role in the 2021 meme-stock frenzy — when mom-and-pop investors poured into firms like GameStop and AMC to squeeze short-sellers.
RenTech also had increased its stake in the floundering movie theater chain by 78% to about 8.7 million shares during the first quarter, according to the filing.
That position was worth more than $46 million as of Wednesday trading – up from about $32 million last quarter.
On Wednesday, the meme-stock rally fizzled, with GameStop and AMC plunging by 19% and 20%, respectively.
Nonetheless, their unexpected rise this week could still give RenTech a massive windfall.
The firm makes lightning-quick trades using algorithms, which can result in major changes to its stock portfolio each quarter.
Simons, the market guru and mathematician, a died last Friday at age 86.
Gill, who also goes by the moniker “DeepF–kingValue” on Reddit, reignited interest in the struggling companies after he shared a series of memes on X earlier this week.
The posts, his first public interaction since 2021, included a meme of a video game player leaning forward in his chair and a series of movie clips from popular TV shows and movies such as Marvel’s “Avengers” and “Breaking Bad.”
The X account @TheRoaringKitty continued posting movie clips on Wednesday, but Gill has yet to personally reveal his next move.
With Post wires