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Mets Fans Worry That GameStop's Rise Will Mean Mets Losses

The concern relates to the investment by Mets' owner Steve Cohen's Point72 in Melvin Capital, which was short GameStop.
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You probably wouldn’t expect the recent frenzied surge in GameStop’s  (GME) - Get GameStop Corporation Report stock to have any impact on the New York Mets baseball team.

But Mets fans are worried because owner Steve Cohen’s Point72 hedge fund has invested in Melvin Capital, a hedge fund that had a huge short position in GameStop. A source told The New York Times that Cohen’s hedge fund has slumped 15% this year.

Of course, that’s not a very big move given the scope of GameStop’s dizzying ascent - its stock has jumped more than 650% in the last month - and the size of Cohen’s wealth. He’s worth $14.6 billion as of Thursday, according to Forbes.

Citadel and Point72 are injecting $2.75 billion in Melvin to help keep it afloat, with $750 million coming from Point72. Melvin was managing $1 billion of its money before that, sources told The Times.

Mets fans queried Cohen and offered their thoughts about whether the Melvin debacle would affect the Mets.

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As one fan put it, “Is this Gamestop business effecting the Mets payroll? I mean that's the main story in all of this.”

Cohen’s response: “Why would one have anything to do with the other.”

The fan’s response: “Because both businesses have the same sugar daddy!”

As for GameStop, shares of the video game retailer continued to whiplash Thursday, tumbling, rising, and then sinking again after trading platforms like Robinhood limited transactions in the stock.

AMC Entertainment  (AMC) - Get AMC Entertainment Holdings Inc. Class A Report and Bed Bath & Beyond  (BBBY) - Get Bed Bath & Beyond Inc. Report - two other heavily shorted stocks - dropped sharply on Thursday.

The activity was sparked largely by the Reddit-based chatroom WallStreetBets.