Investment firms took a stand on stocks hit by Archegos implosion, Gamestop

Billionaire investor George Soros addresses the audience during the Schumpeter Prize in Vienna, Austria June 21, 2019. REUTERS/Lisi Niesner

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May 17 (Reuters) – Several investment firms bought shares of ViacomCBS Inc (VIAC.O), Baidu (9888.HK) and Discovery Inc (DISCA.O), which made large market moves linked to the implosion of investment firm Archegos Capital Management, while others revealed bets against retail favorite GameStop Corp (GME.N) on Monday.

A number of investment managers have been betting on companies that fell when big banks hastily sold them amid Archegos’ collapse in late March.

Other funds used the first quarter to take put positions, which are bearish bets, in GameStop. Gamestop was at the center of a battle earlier this year between retail investors who believed the struggling video retailer should trade higher and hedge funds like Melvin Capital, which bet its stock would fall.

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Melvin Capital, which was badly hit after holding bearish positions on GameStop, did not disclose any short positions in its latest filing. In February, Gabriel Plotkin of Melvin said he was worried about holding big short positions again. Read more

Regulatory filings show Soros Fund Management and hedge funds HG Vora Capital Management and Coatue Management took positions in media stock ViacomCBS Inc after disclosing no holdings in the prior quarter.

The so-called 13F documents do not disclose when the purchase was made, but provide insight into what US equity fund managers held at the end of the quarter. Read more

Archegos, a family office run by former Tiger Asia director Bill Hwang, was heavily exposed to ViacomCBS, leaving the company facing a huge margin call from its major brokerage banks, which in March were forced to withdraw. sell large blocks of shares in ViacomCBS, media peer Discovery Inc (DISCA.O) and Chinese search giant Baidu (9888.HK). ViacomCBS plunged 57% in March while Discovery fell 44% and Baidu 30%. Read more

Soros Fund Management, founded by billionaire George Soros, bought $194 million worth of ViacomCBS stock according to its depositwhile HG Vora scooped up $78.9 million and Philippe Laffont’s Coatue Management bought $77.1 million over the same period.

British hedge fund firm Rokos Capital Management, led by former Brevan Howard partner Chris Rokos, also bought $167.8 million worth of Baidu shares in the first three months of the year, the documents show. deposited.

Laurion Capital Management added $231.6 million to Baidu over the same period while Soros scooped up $77 million and Hong Kong-based activist fund Oasis Management increased its bet in the company by 42% to 46 .5 million dollars.

Soros, currently led by Chief Investment Officer Dawn Fitzpatrick, and London-based hedge fund giant Marshall Wace both acquired more than 200,000 shares in Discovery after holding no positions in the previous quarter.

Many investment funds did not hold shares of ViacomCBS, Baidu or Discovery in the prior quarter, filings showed.

Several hedge funds also disclosed new put options on GameStop Corp (GME.N) during the same period, including Robert Citrone’s Discovery Capital Management and Caxton Associates, which bets on macro events.

Taconic Capital Advisors, Hunting Hill Global Capital and Hudson Bay Capital Management also took similar positions.

Put options, which give the holder the right to sell at a specified price, can be used by a hedge fund to short sell a stock without using stock markets. Read more

Melvin, who closed his GameStop position earlier in the year with a significant loss, did not list the company as one of his positions in his latest filing.

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Reporting by Maiya Keidan in Toronto Editing by Matthew Lewis

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