was almost done with a routine interview on CNBC when he summoned a demon that has terrorised and destroyed even Wall Street's best minds.
“Let ’em come. It's 12 basis points. They’re crazy people. I will not notice them. They can have their fun,” he told the CNBC anchor.Social media lit up, and even if AMC’s stock fell the following day, it marked the moment that meme stocks rose from the dead. Many traders are convinced that it was Asness’ comments that sparked the resurrection.
Other favourite shorts and stocks heavily owned by retail investors have run hard such as Imugene, Sayona Mining, and Kogan.Meme stocks may have been just a tiny position for Asness but others have certainly felt the pain. That includes Bronte Capital, which lagged the market in July by about 5 per cent after a strong run of returns.
A credible theory is that around the time Asness made his comments , a retail trading factor gathered steam.That in turn set off momentum triggers, which force hedge funds in crowded short trades to scramble for the exits, pushing up prices further.hurt value focused hedge funds that had short bets in what they believed to be excessively valued stocks loved by retail investors. Tesla was the stock of choice back then.and the pain migrated to the meme stock shorters.