LONDON – FEBUARY 10, 2021 – Some investors pocketing big gains from the short squeeze on $GME. CWJ Capital is rumored to have made US$68M in one week from the GameStop stock runup.
CWJ Capital is a proprietary trading company based in Hong Kong. Like most financial institutions, the company uses algorithms and formulas to guide its investment strategy. However, CWJ Capital has taken data analytics farther and incorporated artificial intelligence and deep data learning into its modelling method. Market pricing, movement and sentiment seem to show the most value among all the factors being analysed by the machine-learning systems.
Because of the specialised AI, the data analysts were able to see the value of GameStop increasing before other investors — allowing the small group of traders at CWJ Capital in Hong Kong to get ahead of the runup by retail investors. The investors were able to realise a gain of nearly $68 million compared to one hedge fund that reportedly lost $5 billion on its GameStop strategy. Melvin Capital, a premier Wall Street hedge fund entangled in the frenzy over GameStop (GME), lost 53% in January Melvin, a major short-seller of GameStop, bet that the company’s shares would drop. But, on January 11, GameStop announced new board members who could help it with digital sales. That set off a fury on Reddit, namely subreddit WallStreetBets, which catapulted GameStop’s stock more than 1,600%.
Hedge funds like Melvin with huge short positions in GameStop and other stocks targeted by WallStreetBets got burned. The Reddit group specifically targeted stocks that were heavily shorted. At one point, GameStop had more short interest than shares on the market.
ABOUT CWJ CAPITAL
CWJ Capital Ltd is a Proprietary trading company based in Hong Kong, London and Dubai. Owned by CWJ Capital Group, CWJ trades across global financial markets and is dedicated to investing in trading technology such as machine-learning artificial intelligence and blockchain. CWJ’s objective is to produce exceptional returns for its shareholders by strictly adhering to systematic investments.