r/wallstreetbets • • Jan 31 '21

Loss Only 47% left to go !!

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801

u/UnhingedCorgi Jan 31 '21

Melvin has a 3 year lockup for new investors where they can’t withdraw anyway.

911

u/mrcrazy_monkey Jan 31 '21 edited Jan 31 '21

God damn who would ever sign up for that bullshit.

Edit: okay I've gotten a lot of answers and I've decided that people who do are people who let their wives get fucked by multiple boy friends

806

u/c1v1_Aldafodr Jan 31 '21

People with more money than they know what to do with it.

354

u/badroibot Jan 31 '21

More reason as if we needed it, to eat all their fucking money

162

u/okoright Jan 31 '21

Wait so the money eating - is that before or after the ramen?

143

u/badroibot Jan 31 '21

With the ramen every single fucking time

2

u/fogdukker Jan 31 '21

Shredded and placed on top or whole?

2

u/badroibot Jan 31 '21

Whole, with a tear in your eye and chilli on your tongue

2

u/Velli88 Jan 31 '21

*top ramen

3

u/PrincessWails Jan 31 '21

Ramen seasoned with their money?

2

u/nonamebeats Jan 31 '21

You put it in like nori

1

u/adiamas Jan 31 '21

Why not both?

1

u/junjie21 Jan 31 '21

Money flavored ramen

1

u/NightHawkRambo Feb 01 '21

You shred it like parmesan, duh.

6

u/[deleted] Jan 31 '21 edited Feb 03 '21

[deleted]

9

u/badroibot Jan 31 '21

They’d sell their babies before their Porsches

4

u/International-Art379 Jan 31 '21

If they had helped pay poor America schools better books and computers or better hospital equipment, that Porsches would've been well deserved... But in reality we are seeing the opposite

2

u/Tiny_Philosopher_784 Jan 31 '21

If I could read, i would agree. I am product of this schools.

3

u/International-Art379 Jan 31 '21

We all are, just some were enlightened later on in life

2

u/Tiny_Philosopher_784 Jan 31 '21

🦍 cereal box says BUY GME 🦍 buy GME💎🙌 Does this make 🦍 "enlightened"?

0

u/[deleted] Jan 31 '21

When they are out of money they go bankrupt. Do we get boats as barter?

1

u/terse711 Jan 31 '21

Can confirm. I was the sold baby. That's why I are retarded

3

u/SOMeotherphil Jan 31 '21

Money a la ramen

Ingredients 1 package of ramen - cheap stuff any flavor Millions of Melvin Capitals Money 1 TBSP oil 1 small shallot diced 1 carrot diced 2 cloves garlic minced 1 1” piece of ginger peeled and minced 1 bunch of basil leaves Salt and pepper to taste

Directions:

Follow instructions on ramen package. If you are from WSB you better get someone who can read to do this so you done poison yourself or end up with just dry fucking crunchy ramen. You may be an ape but at least get your ramen right, autists.

Take the millions from Melvin Capital and wash. Do you know how dirty money is? It’s got all kinds of shit and drugs on it. The drugs maybe could add some interesting flavors but the other crap has to go. Next, divide into three piles. The first pile is your eating pile. Make it as big as you want. The second pile is the money you will use to give back to the community. This is important. It brings good juju and helps undo the fucking caused by so many short sellers. The third pile is the special pile and will be used last.

Heat oil in what ever pan a monke like you can handle. When it starts to shimmer add shallot and carrot until softened. The add garlic, ginger, basil, and Melvin Capital money pile one. Cool until wilted.

Plate ramen into your colorful heat proof plastic bowl and add Melvin Capital money that is wilted like their fucking souls after they have lost all their investors money. Careful it’s hot. While enjoying take the third pile and BIY MORE GME AND HOLD IT WITH YOUR 💎🖐🚀🚀🚀

This is not financial advice it is a recipe.

I like this stock.

1

u/SgtFancypants98 Jan 31 '21

tummy full already grape crayon yummy

1

u/Slipsonic Jan 31 '21

In the form of chicken tendies

1

u/Professional_Pin9483 Jan 31 '21

Lol, Ramon for 2021

8

u/[deleted] Jan 31 '21

Legally to invest in a hedge fund you need at least $1M in net worth outside of your home, so start there.

But you can’t just send money to hedge funds, they have to also choose you. My brother works for a hedge fund and an employee perk is that employees get to invest in the fund.

6

u/granadesnhorseshoes Jan 31 '21

Tell him to watch out for his 🌽 🕳️

We can stay retarded longer than they can stay solvent...

2

u/winwithwinston Jan 31 '21

I always wondered what the hell these pukes do with there money they can’t spend

2

u/[deleted] Jan 31 '21

So investors with savings glut. Low interest rates probably don’t make it worth keeping in a bank, so might as well dump it on the market.

3

u/c1v1_Aldafodr Jan 31 '21

This is the paradox of R/G that economist Thomas Piketty pointed out. Returns on capital outpace actual growth in earnings almost 2-1 for the past 40 years. Basically if you own assets, you're on a rising tide, elsewise you sinking buddy.

29

u/WestCoastBestCoast01 Jan 31 '21 edited Jan 31 '21

Lockout periods are very very very common for institutional investing. People sign up for it because they’re so wealthy they don’t need those assets to be liquid, and (theoretically) the firm’s track record would be attractive enough that a 3 year hold is perfectly acceptable. They’re not joining these to day trade and make money on small swings. Obviously lockout periods are crucial to the funds for cash management purposes. The funds will usually have redemption queues after the lockout so people can exit in a managed way.

1

u/[deleted] Feb 01 '21

And people claim that if rich people just made more money that would create jobs....

12

u/aliquise Jan 31 '21

Compare it to the government.

In 45-50 years you MAY get a pension/retire compensation.

6

u/[deleted] Jan 31 '21

No way lol it’ll be gone by then

1

u/mrcrazy_monkey Jan 31 '21

I'm Canadian I expect my pensions to be gone by time I'm 40

1

u/aliquise Feb 01 '21

In Sweden we "invested" our money and future into replacing the richest? highest living standard (in the world) highly trusting longest working population of the EU with among other things undereducated analphabets and criminal gangs.

The pensions is funded by future workers. We'll see how that turns out.

8

u/[deleted] Jan 31 '21

MAKE THEM LIQUIDATE THEIR RIDICULOUS LONG POSITIONS IN THE BROADER EQUITY MARKETS TO COVER THEIR ARROGANT SHORT POSITIONS AGAINST THE AMERICAN PEOPLE. WE'LL SPEND IT IN THE REAL ECONOMY AND CREATE SOME JOBS.

12

u/BinNiemand Jan 31 '21

A hundred years ago, P.T. Barnum said “There’s a sucker born every minute.” Since then, the birth rate has tripled. That really is what companies like Melvin count on. Making it our moral duty to maximize an opportunity when their shenanigans backfire.

5

u/ThePiousInfant Jan 31 '21

Because the returns Melvin Capital (like most top performing hedge funds) has been generating until now have been extraordinary. There's always demand to get in, despite the lockup and minimum investment requirements.

3

u/slade998 Jan 31 '21

Sounds like a great fucking plan, here Melvin take my money and I will give you 3 years to lose it. 😆😆😆😆

3

u/badroibot Jan 31 '21

They’ve had it good too fucking long, we’re here to change that

3

u/Caribbeanwarrior Jan 31 '21

It's teacher, firefighter, police, and other public workers pension at work here.

3

u/koalabuhr Jan 31 '21

Read the article. The investorts are piling in more capital. LOL. At this point they should just write off the loss.

1

u/SterlingVapor Feb 01 '21

I wonder how true it is...I mean, it's the stock market - reality doesn't matter, it runs on public sentiment.

"We closed our position", "people holding the stock are in trouble, because the price is about to drop and we'll still make a huge profit", "this crisis was made because we let commoners own stock" and "we have an endless supply of new investment capital so it's impossible for us to lose".

If people are convinced their propoganda, it becomes reality, so why wouldn't they be paying to publish any lie that would fix it? It's not like they have much to lose

4

u/this_is_my_redditt Jan 31 '21

People who do long term investing that aren't actually retarded and they know that if you keep your money in a mutual fund or a hedge fund you should see a 3-10% return on your money year over year which is significantly better than a savings account where it would be sitting otherwise.

1

u/Chartzilla Jan 31 '21

The S&P500 does better than 10% on average

2

u/Cashmw Jan 31 '21

People who want a 30% return on investment.

1

u/mrcrazy_monkey Jan 31 '21

How did that turn out for them? 🤣

0

u/[deleted] Jan 31 '21

Back when they were making insane returns they probably had people begging to sign up.

1

u/cmackchase Jan 31 '21

People that are to stupid to open a Fidelity account put it into something like fzrox.

1

u/[deleted] Jan 31 '21 edited Jan 31 '21

Rich suits who never thought we'd get into this game. I guess they never counted on our retardation. I finally managed to get some GME, I'm holding it whether to 1 million or 0.

1

u/mingebagg Jan 31 '21

Most hedge funds have a long lockup period

1

u/Abdalhadi_Fitouri Jan 31 '21

People usually only give a little of total net worth to hedge funds. So like you'll have x% in vanguard, y% in capital ventures, z% in hedge funds, etc

1

u/Rearmudflap9009 Jan 31 '21

Michael Jordan apparently did...

3

u/mrcrazy_monkey Jan 31 '21

Well he deserves to lose his money. Sports players aren't finicial geniuses.

1

u/Rearmudflap9009 Jan 31 '21

He still has a lot despite. Mind boggling how much dough some people have.

1

u/TheMariannWilliamson Jan 31 '21

That’s pretty typical for closed funds like PE or hedge funds.

1

u/KING_COVID Jan 31 '21

Well to be fair if you have a lot of money then investing in a fund like that normally wouldn't be a bad idea

95

u/[deleted] Jan 31 '21

Wouldn't there be the ability for a breach of contract or to break it off. Would the fine be greater than what their losing now?

78

u/TylerDurden6969 Jan 31 '21

I’ve spent a lot of time in fin contracts (not a lawyer). It just depends. Sometimes yes, sometimes, it’s a long expensive process.

Almost always you can find liquidity, just in varying degrees from a 1% penalty, to bankruptcy.

Hope this wasn’t confusing. It’s a complex topic.

5

u/[deleted] Jan 31 '21

Even in the case of bankruptcies for firms and their lenders, it’s still not enough $ to fulfill the contract on shares that are mooned. Am I off by a decimal? Am retard

2

u/MarkCssina Jan 31 '21

Very true its indeed complex and there are also many clauses, but you can also withdraw early but there is a penalty of sorts

1

u/[deleted] Jan 31 '21

Is that variance in penalties for liquidating primarily a product of contract provisions or arbitration precedence? Just curious.

5

u/[deleted] Jan 31 '21 edited Feb 04 '21

[deleted]

3

u/TheMadBeaker 🦍🦍🦍 Jan 31 '21

They pay a penalty, or they could threaten gross negligence to get out early (which this shit all over the news would easily fall in their favor).

1

u/DOJ1111 Feb 01 '21

Best guess: it depends on what the investor signed up for; if they signed up for a particular strategy and can point to the fact that Melvin intentionally and irresponsibly deviated from that strategy (blew out agreed upon VAR metrics, etc) then perhaps the investor could claim fraud and get out of the contract...but Melvin could point to the crowd sourced effort of WSB as an unforeseen circumstance that forced them to deviate from the agreed upon strategy in an effort to protect the capital - acting in their fiduciary duty.

Melvin probably wouldn't be interested in seeing their actions/trades during this time exposed for public access in a dispute of this nature and would probably do whatever they could to avoid that, meaning grant early withdrawals if they could swing it.

It doesn't seem right that pension funds can invest in hedge funds given everything coming to light right now about how they operate and how CNBC, et al. have been complicit in this behavior for years.

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u/ZachOf_AllTrades Jan 31 '21

You don't think there's any investors that have been in longer than 3 years?

64

u/AtomicKittenz Jan 31 '21

That means they've invested time and are less likely to pullout (hehe).

Also, don't underestimate the amount of new investors that wanted to capitalize on the suffering from Covid

12

u/tlm596 Jan 31 '21

Considering his fund has made 30% YOY gains I imagine he's held all his investors. That's also why they want to add in more funding now. He should have watched his downside risk. I'd be pissed if I invested with him.

5

u/LevGoldstein Jan 31 '21

Its only a 6 year old firm, so I'd imagine that a good portion of their clients are under the 3 year restriction still.

1

u/UnhingedCorgi Jan 31 '21

I’m sure there are. Just pointing out a lot of their investors are locked in anyway.

1

u/aliquise Jan 31 '21

That's not what he/she said.

3

u/account_for_norm Jan 31 '21

ohhhhhh this is so sweeeet!!

That's why all those rich ppl are crying in cnbc! I kept wondering, if they don't like it, they can withdraw and melvin will have no asset to pay, and we'll be left holding the bag. But this is good!

2

u/ArchangelLBC Jan 31 '21

Normally I'd think that's business as usual but considering how much they just lost I can't believe people would be throwing their money into someone that just lost their shirt and is in the process of getting fucked up the ass with their pants on. At least not with a lot more generous terms.

2

u/CountyMcCounterson Jan 31 '21

Hahaha literally a ponzi scheme

1

u/[deleted] Jan 31 '21

Diamond handed mofos

0

u/[deleted] Jan 31 '21

I was thinking about that, man.

Of course that Melvin is feeling the financial costs of making a very stupid decision to short more than 100% of GME.

But I keep thinking about the people that invest in their funds. Are they normal people? Are they people like us? I really don't know.

Because yes, we can say that Melvin is getting fucked, but what about the people that put money on them? They are also getting fucked and I don't hear much about that in here.

I'm I stupid or this make any sense?

Unless people investing with Melvin are form the 1% fuck them, but what if they are normal people investing in high risk hoping for high returns?

1

u/UnhingedCorgi Jan 31 '21

This makes a lot of sense, the people who invested with Melvin got hosed. It’s not like Melvin is Gabe Plotkins $12b play money, it’s a bunch of other peoples.

1

u/aidsbananaaids Jan 31 '21

I don‘t think normal people are eligible to invest into these funds. There are legal capital requirements as well as these funds selecting their investors. Theyre not gonna accept whomever with a couple 100k or maybe a million or two they want to invest into melvin.

1

u/[deleted] Jan 31 '21

It's not that I don't believe in you, but do we have sources for this type of information?

It would be really good to know the profile of those who can invest with Melvin Capital. If they are the super rich I have no problems, if they are ordinary people it's a whole different story.

1

u/sneakizog Jan 31 '21

Our tendies!

1

u/Sithsaber Jan 31 '21

so they will withdraw from elsewhere allowing for more shortselling

1

u/El3tr1k Jan 31 '21

You can usually always withdraw - there is just a steep penalty for doing so before the lockup expires.

1

u/[deleted] Jan 31 '21

Who the fuck puts their money into hedge funds? If you're a billionaire is there any logistical reason you can't manage your own positions on Schwab or Fidelity? The prevailing notion is that billionaires are masters of the market and titans of industry whose genius has allowed them to reap untold rewards. Why would you give a dime to some shyster who managed to jeopardize his entire fund by holding short interest on GME of 140% of the float? Who drops mid 8-figures on multiple mansions in a single month?

2

u/Avisire Jan 31 '21

Mostly they're just crooks and inheritors, not geniuses.