<p><img src="https://static2.businessinsider.com/image/5f914642abcd0c0018d68f85-2400/2020-10-16T150140Z_2_LYNXMPEG9F1BX_RTROPTP_4_USA-STOCKS-VALUE.JPG" border="0" alt="The Bull of Wall Street" data-mce-source="Brendan McDermid/REUTERS" data-mce-caption="Wall Street's Famous Bull" data-link="https://www.reutersconnect.com/all'id=tag%3Areuters.com%2C2020%3Anewsml_KBN27126W%3A2&search=all%3AGoldman%20Sachs"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>The Reddit-fueled market mania that sent <a href="https://www.businessinsider.com/category/gamestop">GameStop</a> and other heavily-shorted stocks soaring last month has often been described as a perfect example of retail investors sticking it to the Wall Street establishment.</p><p>But not everyone on Wall Street was betting against GameStop.</p><p>New York-based hedge fund Senvest Management started investing in GameStop before it caught fire with much of the r/WallStreetBets crowd, and by October 2020, it owned more than 5% of the company, <a href="https://www.wsj.com/articles/this-hedge-fund-made-700-million-on-gamestop-11612390687">The Wall Street Journal</a> reported Wednesday.</p><p>Senvest paid under $10 for most of its shares, and after GameStop stock peaked at more than $400, the hedge fund walked away with a $700 million profit, one of the <a href="https://www.businessinsider.com/winners-losers-gamestop-reddit-wallstreetbets-traders-wall-street-short-squeeze-2021-1'r=ts-sub">biggest winners</a>, according to The Journal.</p><p>By contrast, Reddit user r/DeepF---ingValue, who has largely been credited with igniting the GameStop rally, claims to have made a <a href="https://markets.businessinsider.com/news/stocks/gamestop-investor-deepfuckingvalue-roaring-kitty-reddit-stocks-wall-street-2021-1-1030022004'r=ts-sub">$48 million profit</a>.</p><p><strong>Read more:</strong><em> <a href="https://www.businessinsider.com/stocks-hedge-fund-manager-explains-gamestop-mania-shares-next-pick-2021-2'r=ts-sub">The investing chief at a $200 million hedge fund that earned 300% on its Bed Bath & Beyond trade says the GameStop mania is 'just the beginning'and shares another stock that he believes will similarly spike</a></em></p><p>While Senvest got in on GameStop after a compelling presentation by its new CEO George Sherman and the involvement of <a href="https://markets.businessinsider.com/news/stocks/gamestop-stock-price-investment-ryan-cohen-chewy-founder-1700-return-2021-1-103000086'r=ts-sub">investor and Chewy founder Ryan Cohen</a>, it got out because of a tweet fired off by Elon Musk, The Journal reported.</p><p>On January 26, after the market closed, Musk simply tweeted "<a href="https://twitter.com/elonmusk/status/1354174279894642703's=20">Gamestonk!!</a>"</p><p>Musk's tweet helped extend the short-squeeze, sending <a href="https://markets.businessinsider.com/news/stocks/gamestop-stock-price-elon-musk-gamestonk-tweet-extends-trading-rally-2021-1-103000906'r=ts-sub">GameStop's stock surging another 157%</a> when the market reopened the following morning.</p><p><strong>Read more:</strong><em> <a href="https://www.businessinsider.com/chart-elon-musk-twitter-biggest-wealth-creator-gamestop-bitcoin-signal-2021-2'r=ts-sub">One chart shows how Elon Musk can create a huge amount of wealth with just his Twitter</a></em></p><p>"Given what was going on, it was hard to imagine it getting crazier," Senvest CEO and fund manager Robert Mashaal told The Journal.</p><p>Many <a href="https://markets.businessinsider.com/news/stocks/here-are-the-hedge-fund-winners-and-losers-amid-januarys-gamestop-mania-2021-2-1030034341'r=ts-sub">hedge funds have been hit hard</a> by the recent market frenzy. But even GameStop short-seller Melvin Capital, one of the biggest losers with <a href="https://www.businessinsider.com/melvin-capital-lost-53-percent-january-after-gamestop-shares-skyrocketed-2021-1'r=ts-sub">losses of 53%</a> in January, eventually got a <a href="https://markets.businessinsider.com/news/stocks/steve-cohen-ken-griffin-invest-3-billion-gamestop-short-seller-2021-1-103000330'r=ts-sub">$2.8 billion bailout</a> from other hedge funds.</p><p>Meanwhile, GameStop's stock had already dipped back down to around <a href="https://markets.businessinsider.com/news/stocks/gamestop-amc-reddit-day-traders-stock-market-volatility-hold-line-2021-2-1030038974'r=ts-sub">$92 on Wednesday</a>, and reports are emerging of retail investors who bought in late and have already <a href="https://www.businessinsider.com/barstool-sports-dave-portnoy-lost-money-gamestop-rally-2021-'r=ts-sub">lost massive sums</a>.</p><p> </p><p><a href="https://www.businessinsider.com/elon-musk-gamestop-tweet-senvest-hedge-fund-700-million-profit-2021-2#comments">Join the conversation about this story »</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/coronavirus-myths-debunked-wuhan-china-2020-2">Epidemiologists debunk 13 coronavirus myths</a></p>
Click here to read full news..
