GameStop : London's White Square Capital shuts after swallowing lofty GameStop losses
June 22, 2021 at 02:50 am EDT
Share
London-based hedge fund White Square Capital will close its doors today, according to reports, following its lofty losses in GameStop’s first ‘meme stock’ rally in January.
White Square bet against the US retailer GameStop, the Financial Times first reported today, which led to a percentage loss hitting double-digits at the beginning of an already tough financial year – and after an even tougher one.
According to people familiar with the fund and a letter to investors, the hedge fund has told investors that it will close its main fund and return capital this month after a review of its business model.
Earlier this month, so-called ‘meme stocks’ have received $1.27bn (£900m) of retail inflows, Vanda Research said.
The figure matched their peak in January when the surge in Gamestop shares squeezed short-sellers, lifting the stock price further.
City A.M. has contacted White Square Capital for comment.
The post London hedge fund White Square Capital shuts after swallowing lofty GameStop losses appeared first on CityAM.
GameStop Corp. offers games and entertainment products through its stores and e-commerce platforms. The Company operates in four geographic segments: United States, Canada, Australia and Europe. Each segment consists primarily of retail operations, with the significant majority focused on games, entertainment products and technology. The Company has a total of approximately 4,169 stores across all of its segments: 2,915 in the United States, 203 in Canada, 404 in Australia, and 647 in Europe. Its stores and e-commerce sites operate primarily under the names GameStop, EB Games and Micromania. Its Australia and Europe segments also include approximately 49 pop culture themed stores selling collectibles, apparel, gadgets, electronics, toys and other retail products for technology enthusiasts and general consumers in international markets operating under the Zing Pop Culture brand. The Company's brands also include its print and digital gaming publication, Game Informer magazine.