World news – Reddit day traders add billions to the wealth of the super rich

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A horde of traders on Reddit clinging to the establishment in search of sharply discounted stocks are adding billions to the wealth of some of the ultra-rich in the world.

Larry Chen, Chairman and Chief Executive Officer of GSX Techedu, saw its net worth jump $ 4.2 billion on Wednesday as the Beijing-based online tutoring company’s U.S. custody shares rose 36% and its net worth on the Bloomberg Billionaires Index rose to $ 15.6 billion Chinese billionaire Wang Jianlin’s net worth increased by $ 773 million through his stake in AMC Entertainment Holdings Inc. A flood of retailers caused the stock to surge up to 310% even as the broader market slumped. Hedge funds like Mudrick Capital, which owned 4.6 million shares in the cinema operator as of Jan. 4, also received a boost.

Ryan Cohen, co-founder of Chewy Inc., added his stake in GameStop Corp., the video game retailer , which is up more than 1,700% this year, added about $ 1.8 billion. Co-investor Donald Foss, founder of sub-prime auto lender Credit Acceptance Corp., now owns approximately $ 1.2 billion in stake, according to the Bloomberg Index.

Even the head of Tootsie Roll Industries Inc. benefited. CEO Ellen Gordon’s net worth rose $ 185 million as the confectioner’s shares rose to a record high, while National Beverage Corp. founder Nick Caporella saw his net worth jump $ 1.8 billion to 6 , $ 8 billion maker of LaCroix soda water rose 40%.

Day traders have stacked themselves in the past few sessions into previously unloved tickers favored by short sellers, taking them to record highs. GameStop’s meteoric rally has already wore down some institutional investors, and Melvin Capital closed its short position through Wednesday.

The search for sharply shortened stocks is being led by the Reddit forum WallStreetBets, which has roughly 2.8 million members . Some of the more open have taken an activist stance, portraying their campaign as a stance against societal issues such as financial inequality and intergenerational injustice.

Gordon owns just over half of Tootsie Roll Industries’ common stock and 81% of its B shares. Her stake in the maker of Tootsie Pops, Junior Mints, and Dubble Bubble Gum, which she owns both directly and on behalf of other family members, is now $ 1.8 billion.

Cohen made an investment in August known in GameStop. By December, he had bought 9 million shares in the retailer for a total of $ 76 million and now holds approximately $ 3.1 billion. GameStop stock rose 135% to a record $ 347.51 in New York after three volatility stops were triggered.

Wang, the founder of the closely held conglomerate Dalian Wanda Group, now owns a stake in AMC worth from around $ 1 billion, which has risen to $ 19.90 in New York retail since October 2018. Wang has a net worth of $ 14.4 billion, according to the US state, Bloomberg Billionaires Index.

(Except for the headline, this story was not edited by NDTV staff and published from a syndicated feed.)

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