Citron Capital: The Hedge Fund that Shorted GameStop

Citron Capital is a hedge fund founded in 2002 by Andrew Left. The fund is known for its short positions in companies that it believes are overvalued or fraudulent.

In 2021, Citron Capital became famous for its short position in GameStop, a video game retailer. The fund's short position was based on the belief that GameStop was overvalued and that its stock price was being artificially inflated by retail investors on social media platforms such as Reddit.

Citron Capital's short position in GameStop was ultimately unsuccessful. The stock price of GameStop continued to rise, and the fund was forced to close its short position at a loss.

The GameStop short squeeze was a major embarrassment for Citron Capital. The fund was forced to pay out billions of dollars in losses, and it lost a significant amount of credibility in the financial community.

Despite the GameStop debacle, Citron Capital remains a major player in the hedge fund industry. The fund has a long history of successful investments, and it continues to be one of the most closely watched hedge funds in the world.

Citron Capital's Investment Strategy

Citron Capital's investment strategy is based on fundamental analysis. The fund's analysts research companies in depth, looking for companies that are undervalued or overvalued. The fund also looks for companies that are facing challenges or that are undergoing a period of change.

Once Citron Capital identifies a company that it believes is undervalued or overvalued, the fund will typically take a short position in the company's stock. A short position is a bet that the stock price of a company will decline.

Citron Capital will typically hold its short positions for a period of months or even years. The fund is patient and willing to wait for the market to recognize the true value of a company.

Citron Capital's Track Record

Citron Capital has a long history of successful investments. The fund has generated an average annual return of over 20% since its inception in 2002.

Citron Capital has made a number of notable investments over the years. Some of the fund's most successful investments include:

• Tesla
• Amazon
• Apple
• Google
• Microsoft

Citron Capital has also made a number of unsuccessful investments. Some of the fund's most notable losses include:

• GameStop
• Herbalife
• Valeant Pharmaceuticals

Citron Capital's Impact on the Market

Citron Capital has had a significant impact on the market. The fund's short positions have often caused the stock prices of companies to decline. This has led to some companies being taken private or even going bankrupt.

Citron Capital's short positions have also been known to trigger short squeezes. A short squeeze is a situation in which the stock price of a company rises rapidly, forcing short sellers to close their positions at a loss.

The GameStop short squeeze was the most famous example of a short squeeze in recent history. The short squeeze caused Citron Capital to lose billions of dollars in losses.

Citron Capital's Future

Citron Capital is a major player in the hedge fund industry. The fund has a long history of successful investments, and it continues to be one of the most closely watched hedge funds in the world.

The GameStop short squeeze was a major embarrassment for Citron Capital. The fund lost billions of dollars in losses, and it lost a significant amount of credibility in the financial community.

Despite the GameStop debacle, Citron Capital remains a major player in the hedge fund industry. The fund has a long history of successful investments, and it continues to be one of the most closely watched hedge funds in the world.

Tables

Table 1: Citron Capital's Performance

Table 2: Citron Capital's Notable Investments

Table 3: Citron Capital's Notable Losses

Table 4: Citron Capital's Impact on the Market

FAQs

1. What is Citron Capital?

Citron Capital is a hedge fund founded in 2002 by Andrew Left. The fund is known for its short positions in companies that it believes are overvalued or fraudulent.

2. What is Citron Capital's investment strategy?

Citron Capital's investment strategy is based on fundamental analysis. The fund's analysts research companies in depth, looking for companies that are undervalued or overvalued. The fund also looks for companies that are facing challenges or that are undergoing a period of change.

3. What is Citron Capital's track record?

Citron Capital has a long history of successful investments. The fund has generated an average annual return of over 20% since its inception in 2002.

4. What is Citron Capital's impact on the market?

Citron Capital has had a significant impact on the market. The fund's short positions have often caused the stock prices of companies to decline. This has led to some companies being taken private or even going bankrupt.

5. What is the future of Citron Capital?

Citron Capital is a major player in the hedge fund industry. The fund has a long history of successful investments, and it continues to be one of the most closely watched hedge funds in the world.

6. What is a short squeeze?

A short squeeze is a situation in which the stock price of a company rises rapidly, forcing short sellers to close their positions at a loss.

7. What is the GameStop short squeeze?

The GameStop short squeeze was a major short squeeze that occurred in January 2021. The short squeeze was caused by a group of retail investors on social media platforms such as Reddit. The retail investors bought shares of GameStop, causing the stock price to rise rapidly. This forced short sellers to close their positions at a loss.

8. What is Citron Capital's role in the GameStop short squeeze?

Citron Capital was one of the hedge funds that was forced to close its short position in GameStop at a loss during the short squeeze.