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For people not reading the article and thinking this hedge fund was short these stocks: > In December, AMC signed a commitment letter with Mudrick Capital that
by mattnewton 6y ago
For people not reading the article and thinking this hedge fund was short these stocks:
> In December, AMC signed a commitment letter with Mudrick Capital that called for the hedge fund to buy $100 million of new secured bonds that pay 15% cash or 17% deferred interest. In exchange, Mudrick received a commitment fee equal to about 8 million AMC shares.
ie, this firm indirectly bet on an AMC recovery, investing in them as “distressed debt”, but the recovery in their stock came true suddenly.
- johntb86 6y agoThey also sold out-of-the-money calls in Gamestop, meaning they made money if the price didn't increase.
- mattnewton 6y agoAnd on AMC covered by their shares too it looks like. But the article title and comments here made it sound like they were the same short selling hedge funds targeted for squeezing by wsb, when the truth is more complicated.