Billionaire Mark Cuban Says He “Hedged” His Portfolio Out Of Concerns Over GameStop Market War

Billionaire entrepreneur Mark Cuban says he’s a fan of GameStop’s Reddit-inspired short squeeze, but admits that he “hedged” his own portfolio.

The Shark Tank star told CNBC that the WallStreetBets group simply used a tactic often used by investment professionals.

“This is not the first time that stocks with low float or heavy short are sought,” Cuban said of the Squawk Box program.

“There are a lot of hedge funds that have made big bucks over the years on sharply shortened stocks. I don’t think that’s anything else.

“It’s just the people who do the push, not the ones we expect them to, and that’s why I like it.”

“When you bring people out of nowhere to really show the inefficiencies of the market, that’s a good thing.”

GameStock gained nearly 2,000 percent after the group’s investment in the sharply shortened stocks, penalizing some hedge fund managers and Wall Street pros.

“As long as we allow companies to trade stocks in milliseconds, how can we expect this to be an investor market?” added Mr Cuban.

“Until you change that, you can’t change what happens to WallStreetBets.”

Mr Cuban said he had concerns about valuations across a number of asset classes and had adjusted his own investments to reflect this.

“I’ve hedged my portfolio,” he said.

“There will be some kind of deflation in these significant assets and it will be scary when that happens.”

Source link

Posted in World

Leave a Comment

Thanks for visiting get comfortable with the space, officially registering is the most important thing to do right now The first big project won’t start until your on board.