10 Biggest Hedge Fund Casualties of Reddit WallStreetBets’ Short Squeezes
[https://finance.yahoo.com/news/10-biggest-hedge-fund-casualties-170206625.html](https://finance.yahoo.com/news/10-biggest-hedge-fund-casualties-170206625.html)
**Usman Kabir Mon, July 5, 2021, 1:02 PM**
* [**GME**](https://finance.yahoo.com/quote/GME?p=GME)**-0.75%**
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* [**MA**](https://finance.yahoo.com/quote/MA?p=MA)**+1.17%**
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* [**TSLA**](https://finance.yahoo.com/quote/TSLA?p=TSLA)**+0.14%**
In this article, we discuss the 10 biggest hedge fund casualties of Reddit WallStreetBets' short squeezes. If you want to skip our detailed analysis of these hedge funds, go directly to the [**5 Biggest Hedge Fund Casualties of Reddit WallStreetBets' Short Squeezes**](https://www.insidermonkey.com/blog/5-biggest-hedge-fund-casualties-of-reddit-wallstreetbets-short-squeezes-958146/)**.**
Hedge funds have suffered billions in losses this year in a fierce stock market showdown with retail investors on internet platforms like Reddit and Twitter over the past six months. These battles have usually centered around stocks that the hedge funds attempted to short-sell, inviting the wrath of users on Reddit forums like WallStreetBets, mostly comprising young investors, who bought up stakes in these companies to drive up the share price, initiating a short squeeze and making handsome profits in the process.
Some of the firms involved in this saga include GameStop Corp. (NYSE: [GME](https://www.insidermonkey.com/insider-trading/company/gamestop%20corp/1326380/)), AMC Entertainment Holdings, Inc. (NYSE: [AMC](https://www.insidermonkey.com/insider-trading/company/amc%20entertainment%20holdings%20inc/1411579/)), ContextLogic Inc. (NASDAQ: [WISH](https://www.insidermonkey.com/insider-trading/company/contextlogic%20inc/1822250/)), and Clover Health Investments, Corp. (NASDAQ: [CLOV](https://www.insidermonkey.com/insider-trading/company/clover%20health%20investments%20corp%20de/1801170/)), among others. According to some media reports, hedge funds have suffered a total of $12 billion in losses in these short-selling schemes. Investment bank Goldman Sachs last year compiled an index of stocks that these retail investors favored. That index has doubled in value over the past few months.
In an analysis, released to clients earlier this month, the investment bank [highlighted](https://markets.businessinsider.com/news/stocks/stock-market-analysis-retail-investors-plowing-400-billion-into-stocks-2021-6) that the retail favorites index had beaten the overall market by three percentage points this month. The analysis also underlined that retail investor spending into equities was poised to rise to $400 billion this year, an increase of $50 billion from a previous estimate of $350 billion. Perhaps this is one reason why hedge funds have been actively monitoring the hype around certain companies on Reddit in order to better manage their risk profiles.
The battle, though, still looks to be far from over. According to Goldman Sachs, the retail investor boom in equities is just beginning. Hedge funds managers, like Andrew Left, who expected retail investors to jump ship and drive the price of shorted stocks down, have been left red-faced as the prices of these stocks — referred to as meme stocks — continues to soar higher. However, in addition to being active, these stocks have been some of the most volatile ones on the market, adding to the overall chaos in the market.
The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, here is our list of the 10 biggest hedge fund casualties of Reddit WallStreetBets' short squeezes. These were ranked keeping in mind the overall losses, size of the hedge fund, and the market credence of the hedge fund manager. The hedge funds that suffered losses, either directly or indirectly, as a result of the short squeezes but did not shutter completely have also been included in this list.
**Biggest Hedge Fund Casualties of Reddit WallStreetBets' Short Squeezes**
**10. Citron Capital**
Andrew Left, the editor of investment newsletter *Citron Research*, is one of the most famous short-sellers on the market. His hedge fund was one of the biggest losers in the GameStop Corp. (NYSE: GME) short squeeze. Citron is placed tenth on our list of 10 biggest hedge fund casualties of Reddit WallStreetBets' short squeezes. Left took to video sharing website YouTube in January to [assure](https://www.youtube.com/watch?v=yS4yPsmaDDQ) investors in Citron Capital that he had made a mistake in predicting that GameStop Corp. (NYSE: GME) stock would lower in price.
Left clarified that Citron had managed to cover the short positions on GameStop Corp. (NYSE: GME) at a 100% loss, learning important lessons in the process. However, Left, in the video, said that he expected the stock of the video game retailer to return back to normal levels within a short span of time. This prediction has not aged well, as the stock is still trading at a high price, despite pulling back from record highs registered in January.
**9.** [**Maverick Capital**](https://www.insidermonkey.com/hedge-fund/maverick-capital/17/)
Maverick Capital is an investment firm run from Texas. It is placed ninth on our list of 10 biggest hedge fund casualties of Reddit WallStreetBets' short squeezes. The hedge fund is run by Lee Ainslie and manages over $10 billion in assets. Earlier this month, *Financial Times* [reported](https://www.ft.com/content/dcd86860-09ed-420e-a5cc-d6d281863c03) that Maverick Capital was keeping track of the hype around certain stocks on Reddit forums in order to protect itself from short squeezes, lending credence to earlier reports that the hedge fund had suffered losses in the GameStop Corp. (NYSE: GME) saga at the turn of the year.
Maverick Capital holds a large stake in Amazon.com, Inc. (NASDAQ: AMZN), the ecommerce retailer based in Washington. Out of the hedge funds being tracked by Insider Monkey, London-based investment firm [Citadel Investment Group](https://www.insidermonkey.com/hedge-fund/citadel+investment+group/44/) is a leading shareholder in Amazon.com, Inc. (NASDAQ: AMZN) with 3.3 million shares worth more than $10.5 billion.
Just like GameStop Corp. (NYSE: GME), AMC Entertainment Holdings, Inc. (NYSE: AMC), ContextLogic Inc. (NASDAQ: WISH), and Clover Health Investments, Corp. (NASDAQ: CLOV), Amazon.com, Inc. (NASDAQ: AMZN) is one of the stocks to watch out for this year.
In its Q1 2021 investor letter, Hayden Capital, an asset management firm, highlighted a few stocks and Amazon.com, Inc. (NASDAQ: [AMZN](https://www.insidermonkey.com/insider-trading/company/amazon%20com%20inc/1018724/)) was one of them. [Here](https://www.insidermonkey.com/blog/is-amazon-com-amzn-a-great-investment-choice-943917/) is what the fund said:
>*“Amazon (AMZN): We sold our last remaining stake in Amazon this quarter. Amazon was our longest-running investment holding, after having originally purchasing it at the inception of Hayden in 2014, at a price of \~$317.*
*I gave some details of how Amazon has progressed over these past 6.5 years in last year’s Q2 2020 letter, which partners can find here (LINK). The company has executed amazingly well over this tenure, with revenues up \~3.3x and since our initial purchase, and reported operating income up \~30x over that period.*
*Generally, I believe there are three reasons to sell an investment: 1) we recognize our initial thesis is wrong (sell out as quick as possible), 2) we have a significantly higher returning opportunity to redeploy the capital into (sell-down to fund the new investment), or 3) the company is maturing and hitting the top part of it’s S-curve / business lifecycle, so the business has fewer places to reinvest its capital internally. As such, the future returns will likely be lower than the past. This investment thus becomes a “source of capital” in the future, as we fund earlier-stage investment opportunities..." (*[*Click here to view the full text*](https://www.insidermonkey.com/blog/is-amazon-com-amzn-a-great-investment-choice-943917/)*)*
**8.** [**Citadel Investment Group**](https://www.insidermonkey.com/hedge-fund/citadel-investment-group/44/)
Citadel Investment Group is an investment management company registered in Chicago. It is ranked eighth on our list of 10 biggest hedge fund casualties of Reddit WallStreetBets' short squeezes. The hedge fund is run by billionaire Ken Griffin and has a portfolio value of over $400 billion, one of the biggest in the world. Although the fund was not directly impacted by the Reddit-backed short squeeze, it did help arrange close to $3 billion in capital for Melvin Capital that had been hit hard by the short squeeze.
One of the top holdings of Citadel Investment Group is Tesla, Inc. (NASDAQ: TSLA), the California-based electric vehicle maker. Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm[ Citadel Investment Group](https://www.insidermonkey.com/hedge-fund/citadel+investment+group/44/) is a leading shareholder in Tesla, Inc. (NASDAQ: TSLA) with 24.4 million shares worth more than $16.3 billion.
Just like GameStop Corp. (NYSE: GME), AMC Entertainment Holdings, Inc. (NYSE: AMC), ContextLogic Inc. (NASDAQ: WISH), and Clover Health Investments, Corp. (NASDAQ: CLOV), Tesla, Inc. (NASDAQ: TSLA) is one of the stocks to watch out for this year.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ: [TSLA](https://www.insidermonkey.com/insider-trading/company/tesla%20inc/1318605/)) in its Q1 2021 investor letter:
>*“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.*
**7.** [**Candlestick Capital Management**](https://www.insidermonkey.com/hedge-fund/candlestick-capital-management/1231/)
Candlestick Capital Management is a hedge fund headquartered in Connecticut. It is placed seventh on our list of 10 biggest hedge fund casualties of Reddit WallStreetBets' short squeezes. The fund is run by Jack Woodruff and manages more than $4 billion in assets, according to latest filings. The fund was a big gainer in 2020, gaining a handsome 26% over the pandemic period, but suffered low to midteen percentage losses in the Reddit-backed short squeeze earlier this year, per a [report](https://www.wsj.com/articles/several-hedge-funds-stung-by-market-turmoil-11611842693) in business news publication *The Wall Street Journal*.
Candlestick Capital Management has invested heavily in Mastercard Incorporated (NYSE: MA), the New York-based payments processing firm. Out of the hedge funds being tracked by Insider Monkey, Virginia-based investment firm [Akre Capital Management ](https://www.insidermonkey.com/hedge-fund/akre+capital+management/103/)is a leading shareholder in Mastercard Incorporated (NYSE: MA) with 5.8 million shares worth more than $2 billion.
Just like GameStop Corp. (NYSE: GME), AMC Entertainment Holdings, Inc. (NYSE: AMC), ContextLogic Inc. (NASDAQ: WISH), and Clover Health Investments, Corp. (NASDAQ: CLOV), Mastercard Incorporated (NYSE: MA) is one of the stocks to watch out for this year.
In its Q4 2020 investor letter, Bretton Fund, an asset management firm, highlighted a few stocks and Mastercard Incorporated (NYSE: [MA](https://www.insidermonkey.com/insider-trading/company/mastercard%20inc/1141391/)) was one of them. [Here](https://www.insidermonkey.com/blog/should-you-buy-these-2-financial-services-stocks-before-its-too-late-922927/) is what the fund said:
>*“While consumers resumed much of their spending by summer, what and how they used their Visas and Mastercards changed. For obvious reasons, people shifted to contactless payments—one of the Covid-era changes we think is permanent—and replaced travel purchases with online shopping and food delivery. Consumers spent more on their debit cards and less on their credit cards; Visa and Mastercard make more per transaction on the latter. They also make more on cross-border transactions that come mostly from international travel, which ground to a halt early in the pandemic. Visa’s and Mastercard’s earnings per share fell by 7% and 16%, respectively, compared to their usual mid-teens growth. We’re not too worried, and we think they’ll catch up nicely in the post-vaccine world. Visa’s stock returned 17.1% and Mastercard’s 20.2%.”*
**6.** [**Point72 Asset Management**](https://www.insidermonkey.com/hedge-fund/point72-asset-management/750/)
Point72 Asset Management is a Connecticut-based hedge fund. It is ranked sixth on our list of 10 biggest hedge fund casualties of Reddit WallStreetBets' short squeezes. The fund is managed by Steven Cohen and is one of the biggest in the US, managing more than $21 billion in assets at the end of March, according to latest filings. *The New York Times* [reported](https://www.nytimes.com/live/2021/01/27/business/us-economy-coronavirus/point72-gamestop) in February that the fund lost 15% during the GameStop Corp. (NYSE: GME) short squeeze in January. The fund also helped finance a multi-billion dollar bailout for Melvin Capital this year.
One of the premier holdings of Point72 Asset Management is Baidu, Inc. (NASDAQ: BIDU), the Chinese technology company. At the end of the first quarter of 2021, 89 hedge funds in the database of Insider Monkey held stakes worth $6.5 billion in Baidu, Inc. (NASDAQ: BIDU), up from 51 in the preceding quarter worth $4.6 billion.
Just like GameStop Corp. (NYSE: GME), AMC Entertainment Holdings, Inc. (NYSE: AMC), ContextLogic Inc. (NASDAQ: WISH), and Clover Health Investments, Corp. (NASDAQ: CLOV), Baidu, Inc. (NASDAQ: BIDU) is one of the stocks to watch out for this year.
In its Q1 2021 investor letter, Horos Asset Management, an asset management firm, highlighted a few stocks and Baidu, Inc. (NASDAQ: [BIDU](https://www.insidermonkey.com/insider-trading/company/baidu+inc/1329099/)) was one of them. [Here](https://www.insidermonkey.com/blog/heres-why-horos-asset-management-sold-its-baidu-bidu-stake-943425/) is what the fund said:
>*“We have also fully exited our stake in Baidu, following their outstanding performance during the period and their lower relative upside potential compared to other investment alternatives, which we will discuss below.*
*The Chinese technology platform company Baidu has also been held in the portfolios managed by Alejandro, Miguel and myself for several years. During this period, we have seen very high volatility in its share price, which we have taken advantage of to make significant rebalancing moves in our position (in fact, we even sold our entire position once, when we thought the stock’s upside potential was exhausted). After several years of instability, market sentiment turned very positive, putting an end to the historical advertising problems in the healthcare sector, the divestments in O2O (Online-to-Offline) businesses that continued to weigh on the company’s margins, the IPO of part of the iQiyi streaming business (which hid Baidu’s underlying cash generation capacity) and the tough competition from other industry giants such as Tencent and Alibaba, as well as the entry of new players with disruptive business models (ByteDance). At the same time, the company’s recent commitment to electric vehicles contributed even more to this change of narrative. Baidu’s share price rose almost fourfold from the March 2020 lows to all-time highs and reached a valuation where the margin of safety, in our view, was too narrow.”*
**5.** [**D1 Capital Partners**](https://www.insidermonkey.com/hedge-fund/d1-capital-partners/1063/)
D1 Capital Partners is a hedge fund managed from New York. It is placed fifth on our list of 10 biggest hedge fund casualties of Reddit WallStreetBets’ short squeezes. The fund manages more than $13 billion in assets at the end of the first quarter of 2021. It is run by Dan Sundheim. News publication *Bloomberg* [claims](https://www.bloomberg.com/news/articles/2021-01-28/dan-sundheim-s-20-billion-d1-capital-loses-about-20-this-month) that the fund took a 20% hit in the short-selling saga involving GameStop Corp. (NYSE: GME) in January. D1 was one of the best-performing funds in 2020, finishing the year with a 60% gain and $20 billion in assets under management.
D1 Capital Partners has invested a lot of money in Microsoft Corporation (NASDAQ: MSFT), the Washington based technology company that sells computer software and services. Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm [Fisher Asset Managemen](https://www.insidermonkey.com/hedge-fund/fisher+asset+management/11/)t is a leading shareholder in Microsoft Corporation (NASDAQ: MSFT) with 23.9 million shares worth more than $5.6 billion.
In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ: [MSFT](https://www.insidermonkey.com/insider-trading/company/microsoft%20corp/789019/)) was one of them. [Here](https://www.insidermonkey.com/blog/should-you-consider-investing-in-microsoft-msft-943062/) is what the fund said:
>“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”
**4.** [**Maplelane Capital**](https://www.insidermonkey.com/hedge-fund/maplelane-capital/546/)
Maplelane Capital is an investment firm run from New York. It is ranked fourth on our list of 10 biggest hedge fund casualties of Reddit WallStreetBets’ short squeezes. The hedge fund, run by Leon Shaulov, managed over $4 billion in assets. In late January, news publication *Bloomberg* [reported](https://www.bloomberg.com/news/articles/2021-01-27/hedge-fund-maplelane-loses-about-33-on-short-bets-this-month) that the fund had lost 33% in a single month after a failed attempt to short-sell GameStop Corp. (NYSE: GME) stock. However, the firm adjusted the short position before it took further losses as the share price of the video game retailer climbed because of Redditors.
One of the top investments of Maplelane Capital is Alphabet Inc. (NASDAQ: GOOG), the parent company of internet search engine Google. Out of the hedge funds being tracked by Insider Monkey, London-based investment firm [TCI Fund Management ](https://www.insidermonkey.com/hedge-fund/tci+fund+management/1356/)is a leading shareholder in Alphabet Inc. (NASDAQ: GOOG) with 2.9 million shares worth more than $6.1 billion.
In its Q1 2021 investor letter, [Artisan Partners](https://www.insidermonkey.com/institutional-investor/artisan-partners-limited-partnership/26598/), an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ: [GOOG](https://www.insidermonkey.com/insider-trading/company/alphabet%20inc/1288776/)) was one of them. [Here](https://www.insidermonkey.com/blog/artisan-partners-we-have-high-hopes-on-alphabet-goog-regarding-future-prospects-945976/) is what the fund said:
>“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”
**3.** [**Light Street Capital**](https://www.insidermonkey.com/hedge-fund/light-street-capital/552/)
Light Street Capital is an investment company headquartered in California. It is placed third on our list of 10 biggest hedge fund casualties of Reddit WallStreetBets’ short squeezes. The hedge fund is a high-profile casualty to the GameStop Corp. (NYSE: GME) short-selling scheme that failed as Redditors squeezed short-sellers. Light Street Capital, according to *Financial Times*, [managed](https://www.ft.com/content/ca1090ba-c3aa-446c-8406-7ce0e01bb510) over $3 billion in assets at the start of the year. This figure has since fallen to $1.8 billion, with losses primarily driven by short-selling attempts in January and May.
One of the biggest holdings of Light Street Capital is Facebook, Inc. (NASDAQ: FB), the California-based technology company that just crossed $1 trillion in market cap. At the end of the first quarter of 2021, 257 hedge funds in the database of Insider Monkey held stakes worth $40 billion in Facebook, Inc. (NASDAQ: FB), up from 242 in the preceding quarter worth $38 billion.
In its Q1 2021 investor letter, [ClearBridge Investments](https://www.insidermonkey.com/institutional-investor/clearbridge-investments-llc/44201/), an asset management firm, highlighted a few stocks and Facebook, Inc. (NASDAQ: [FB](https://www.insidermonkey.com/insider-trading/company/facebook%20inc/1326801/)) was one of them. [Here](https://www.insidermonkey.com/blog/is-facebook-fb-a-good-stock-to-invest-in-947954/) is what the fund said:
>“We continued to keep our learnings from 2020 in mind during the quarter as we sought to increase the up capture of the portfolio. We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks, including Facebook, while trimming our weighting to stable names, which now represent 47% of the portfolio. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”
**2.** [**Melvin Capital Management**](https://www.insidermonkey.com/hedge-fund/melvin-capital-management/804/)
Melvin Capital Management is a hedge fund that operates from New York. It is ranked second on our list of 10 biggest hedge fund casualties of Reddit WallStreetBets’ short squeezes. The fund took heavy losses as it tried to short-sell GameStop Corp. (NYSE: GME) in January. According to a [report](https://www.cnbc.com/2021/01/27/hedge-fund-targeted-by-reddit-board-melvin-capital-closed-out-of-gamestop-short-position-tuesday.html) by news publication *CNBC*, the fund, managed by Gabriel Plotkin, and with more than $17 billion in assets under management at the end of the first quarter of 2021, was given a bailout worth $3 billion by billionaires Ken Griffin and Steve Cohen in January.
A top holding of Melvin Capital Management is Expedia Group, Inc. (NASDAQ: EXPE), the Wasington-based online travel firm. At the end of the first quarter of 2021, 86 hedge funds in the database of Insider Monkey held stakes worth $6.1 billion in Expedia Group, Inc. (NASDAQ: EXPE), up from 76 in the previous quarter worth $6.5 billion.
In its Q1 2021 investor letter, [ClearBridge Investments](https://www.insidermonkey.com/institutional-investor/clearbridge-investments-llc/44201/), an asset management firm, highlighted a few stocks and Expedia Group, Inc. (NASDAQ: [EXPE](https://www.insidermonkey.com/insider-trading/company/expedia%20group%20inc/1324424/)) was one of them. [Here](https://www.insidermonkey.com/blog/should-you-consider-investing-in-expedia-expe-946679/) is what the fund said:
>“Several of our better performers in the first quarter were purchased while their business models were under stress from COVID restrictions or the macro environment the pandemic created. What gave us confidence in purchasing Expedia were the actions the company took to extend out their balance sheets until travel resumed. It should benefit as a broader vaccination rollout prompts cruise lines to resume operations and consumers to start traveling again and are positioned to deliver better margins and gain pricing power as the economy normalizes due to the cost controls implemented during the downturn.”
**1.** [**White Square Capita**l](https://www.insidermonkey.com/hedge-fund/white-square-capital/1020/)
White Square Capital is a London-based investment management firm. It is placed first on our list of 10 biggest hedge fund casualties of Reddit WallStreetBets’ short squeezes. The firm recently announced that it was closing the main fund and would return capital to investors, according to a [report](https://www.ft.com/content/397bdbe9-f257-4ca6-b600-1756804517b6) published by news publication *Financial Times*. This follows the firm taking in double-digit percentage losses in a short-selling attempt involving GameStop Corp. (NYSE: GME) at the beginning of this year. The fund managed more than $400 million in assets at peak.
One of the top holdings of White Square Capital is The Walt Disney Company (NYSE: DIS), the mass media and entertainment firm based in California. At the end of the first quarter of 2021, 134 hedge funds in the database of Insider Monkey held stakes worth $12.5 billion in The Walt Disney Company (NYSE: DIS), down from 144 in the preceding quarter worth $16.4 billion.
In its Q4 2020 investor letter, [Harding Loevner](https://www.insidermonkey.com/institutional-investor/harding-loevner-lp/331/), an asset management firm, highlighted a few stocks and The Walt Disney Company (NYSE: [DIS](https://www.insidermonkey.com/insider-trading/company/walt%20disney%20co/1744489/)) was one of them. [Here](https://www.insidermonkey.com/blog/harding-loevner-on-walt-disney-dis-theres-fight-left-in-this-old-dog-929397/) is what the fund said:
>“One of the original constituents of the Nifty Fifty holds a place in our portfolio today. When we bought Disney three years ago, we wrote that “we view Disney theme parks in the US, Europe, and China as resistant to online substitution.” We did not reckon on a pandemic, which closed all of them, and sent all of usto our couches. Disney, however, wasready for us, brilliantly illustrating the importance of management foresight and change management. Or, as Louis Pasteur said, “chance favors the prepared mind.
A century after its founding in 1923, Disney is in the middle of a bold shift from its legacy media networks & entertainment model—with cable TV, theme parks, and theater films dominating its earnings—to a direct-to-consumer streaming media model. The keys to Disney’s transition: matchless storytelling, coupled with financial strength. The company reliably creates content that people all over the world are eager to consume. It also hastened spending on original content to attract subscribers to its new streaming platform. These factors have allowed Disney to weather the pandemic having expanded its direct engagement with customers. Such connections yield a rich harvest of insights used to customize offerings on a mass scale, reinforcing that engagement in a virtuous circle and thereby raising the lifetime value of each customer. Subscribers to Disney+ reached 86.8 million one year after launch, compared to the 60 – 90 million management projected to reach in 2024. To be sure, Netflix, Apple, and Amazon remain formidable competitors in new-era streaming entertainment (mind what we said about everyone standing up at once), but there’s fight left in this old dog.”
https://www.reddit.com/r/StockMarket/comments/oeeelv/10_biggest_hedge_fund_casualties_of_reddit/
