London hedge fund White Square Capital shuts after swallowing lofty GameStop losses
London-based hedge fund White Square Capital will close its doors today, according to reports, following its lofty losses in GameStop’s first ‘meme stock’ rally in January.
White Square bet against the US retailer GameStop, the Financial Times first reported today, which led to a percentage loss hitting double-digits at the beginning of an already tough financial year – and after an even tougher one.
According to people familiar with the fund and a letter to investors, the hedge fund has told investors that it will close its main fund and return capital this month after a review of its business model.
Earlier this month, so-called ‘meme stocks’ have received $1.27bn (£900m) of retail inflows, Vanda Research said.
The figure matched their peak in January when the surge in Gamestop shares squeezed short-sellers, lifting the stock price further.
City PM has contacted White Square Capital for comment.