AMC Entertainment Holdings (NYSE:AMC) is back in the news on Friday after a London-based hedge fund said it is taking a short position on shares of AMC stock.
Odey Asset Management, which was founded and is currently managed by Crispin Odey, is the latest group to say it is feeling this way about the firm. That said, Odey told English newspaper The Telegraph that traders from platforms like Robinhood Markets (NASDAQ:HOOD) are to blame.
“My sense was purely that the life cycle of a heavily bought-back short share like AMC is that it is way overvalued on any grounds,” he said. “And the question is: when is it going to lose height? And the answer is when all of the Robinhood lot had bid it up and killed everybody who had shorted it. It was vulnerable at $48 [a share] and now it is about $33.”
So, who are Crispin Odey and Odey Asset Management? Let’s take a closer look to find out.
- Odey Asset Management was established in 1991 as a firm that manages assets “on behalf of institutional investors, private banks and family offices.”
- According to Market Realist, the fund “currently manages about $4.1 billion in funds and operates under the name Brook Asset Management as a result of a 2020 strategy revamp.”
- After its founding, one of Odey Asset Management’s initial investors was well-known investor George Soros.
- In fact, Soros “seeded” $150 million into the fund.
- As said before, Crispin Odey is the founder and current manager of the hedge fund.
- An article from the New York Times Odey became a big name during the 2008 financial crisis.
- During this time, he shorted banking shares and in turn profited around 28 million pounds during the year.
- However, Market Realist also revealed that not everything Odey touches turns to gold.
- A different piece from the New York Times said that the “fund’s ‘performance has suffered heavily after he took a negative stance on the outlook for the global economy and bearish positions against shares that have not borne fruit.'”
Shares of AMC stock are down 3.4% as of Friday morning.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Nick Clarkson is a web editor at InvestorPlace.