Categories: Switch

Hedge Fund Bets 400 Million Dollars Nintendo’s Share Price Will Drop

A new report from Bloomberg has revealed the company that has been shorting Nintendo since May 2018.

The company is none other than New York based hedge fund Melvin Capital Management. According to regulatory filings, Melvin Capital Management has accumulated a $400 million short bet against Nintendo.

Here’s what that means – if Nintendo’s share price falls, Melvin Capital Management will walk away with a huge windfall that could yield billions of dollars. Melvin Capital increased their bets at E3 2018, which resulted in bewildered investors confused about Nintendo’s declining share price.

Company executives have declined to comment the rationale behind shorting Nintendo – maybe they know something that we don’t.

What do you think? Let us know in the comments below.

Iggy

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