White Square, which was founded by Florian Kronawitter, a former trader at Paulson & Co, had managed up to $440 million in assets. It was approached for a comment by email.
The term meme stock was coined after individual investors targeted companies on social media, which in some cases saw shares dramatically rise. This caused some hedge funds with short positions — where a stock is sold first with the intention of it being bought back later in the hope a profit can be made from the price dropping — having to close their positions to prevent crippling losses.
Some hedge funds that were more successful than others are stemming their losses, and White Square is thought to be one of the first hedge funds to close following the sharp price movements.
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