Michael Jordan is bleeding money after finding himself in the middle of the Reddit-fueled GameStop trade war that stunned Wall Street.
Jordan couldn’t have chosen a worse time to welcome hedge fund giants Gabe Plotkin and Daniel Sundheim as investors in the Hornets.
Both men reportedly suffered “catastrophic” losses. The ongoing war between hedge fund managers and amateur investors has reportedly wiped more than $ 5 billion from established hedge funds.
Jordan’s business partner Plotkin and his Melvin Capital fund had aggressively bet against GameStop by shorting their stocks, which meant they could win when the price fell and lose when it rose.
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So when an army of hell-bent amateur investors banded together to add more than 1,700 percent of GameStop’s share price to keep it on Wall Street, it was a disaster for Melvin Capital, and therefore for MJ too.
Melvin Capital admitted defeat Tuesday when Plotkin told CNBC that its fund had closed its position in GameStop, which meant they had decided to swallow their losses.
Jordan has reportedly lost up to $ 230 million in the past 12 months as the COVID-19 pandemic cripples the NBA team’s profits for the second straight season.
However, it’s likely that MJ will come around and Forbes will list its net worth at $ 1.6 billion even after this epic disaster.