New York City, NY – Renaissance Technologies LLC, a quantitative fund established by the late Jim Simons, made significant investments in meme-stock favorites AMC Entertainment Holdings Inc. and GameStop Corp. prior to the recent surge. Regulatory filings revealed that the hedge fund acquired 3.82 million shares of AMC and 1 million shares of GameStop in the first quarter of 2024, indicating a bullish stance on these companies.
The rapid increase in the share prices of AMC and GameStop at the start of the week brought back memories of the 2021 meme-stock trading frenzy, where retail traders drove the prices to unprecedented levels. This latest rally was triggered by a social media post from Keith Gill, known as “Roaring Kitty” on Reddit, who played a prominent role in the 2021 GameStop stock surge.
However, the excitement has waned since then, with AMC and GameStop experiencing price declines. AMC shares plummeted by up to 16% and GameStop by up to 28%. Both stocks are currently trading well below their previous highs amidst ongoing pressures. In the first quarter of 2024, AMC stock fell by 39% and GameStop by 29%.
Renaissance Technologies has not yet responded to requests for comments on its recent investment moves. Regulatory filings only provide a snapshot of a fund’s US stock holdings of over $100 million, with data up to March and subject to changes in subsequent months. Analysts believe that quantitative and hedge funds are better equipped to navigate these volatile situations alongside retail traders.
Other hedge funds, such as Balyasny Asset Management LP, have also delved into trading meme stocks like AMC and GameStop in the early months of this year. DE Shaw & Co Inc opted to sell its positions in these companies, while others like Schonfeld Strategic Advisors LLC and ExodusPoint Capital Management LP exited their GameStop holdings.
Overall, the recent surge in meme stocks has caught the attention of both institutional investors and retail traders, fueling speculation and volatility in the market. The ongoing fluctuations reflect the complex dynamics at play between different types of investors and the ever-changing landscape of stock trading.