Asset Management

Hedge funds scour Reddit a year after GameStop: ‘It’s the tip of the iceberg of generational change’

'The retail crowd is like a pop group that was deemed a one-hit wonder, but unexpectedly continued to storm the charts with new hits’

The collision between social media and financial markets has been one of the most dramatic trends emerging from the pandemic
The collision between social media and financial markets has been one of the most dramatic trends emerging from the pandemic Photo: John Smith/Getty Images

It has been a year since the start of the GameStop saga, where a group of armchair traders on Reddit goosed the stock of the US video game retailer while burning short-selling hedge funds. Experts say that traditional finance should get used to it.

“The retail crowd is like a pop group that was deemed a one-hit wonder, but unexpectedly continued to storm the charts with new hits,” said Ivan Ćosović, founder of Breakout Point, a research firm that uses sources including Reddit’s WallStreetBets to analyse stocks for clients.

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