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| image source: Reuters |
Steve Cohen, founder and owner of Point72 hedge fund deactivated his Twitter account after his family received threats amid the GameStop stock trading frenzy.
In his statement, Cohen said that he enjoyed interacting with the supporters of the New York Mets on Twitter. As he is known, he is the owner of the baseball club. However, he said his party was already receiving threats from Twitter.
Cohen said in a statement: "I enjoyed going with the Mets fans on Twitter, who unfortunately this week have been seized with misinformation unrelated to Mets which has resulted in our family receiving personal threats."
So what is the relationship between Cohen's hedge fund and GameStop? So Cohen's Point72 hedge fund invested in another hedge fund company, Melvin Capital. The company is "betting" on GameStop shares to depreciate.
Two Capital files received the US $ 3 billion or about 42 trillion rupees (at an exchange rate of Rs 14,000) in cash from outside investors, one of which was Point72 to launch the action.
However, the investment suffered losses after a small group of investors made GameStop shares soar by buying bulk.
As a result, Point72 has lost nearly 15% of its profits this year. Cohen, who owns the New York Mets, faced Twitter questions about how the loss to Point72 after investing in Melvin Capital would affect the baseball team. Some of these questions led to threats to his family.
Cohen was also involved in an argument last Thursday with Barstool Sports founder Dave Portnoy on Twitter. Portnoy accused Cohen of being involved in a controversial trading restriction on GameStop stock on brokerage apps like Robinhood.
