The GameStop saga, which pitted small investors against big Wall Street firms, paid off for Richard Mashaal, vice president of Montreal firm Senvest Capital, who saw a combined salary of nearly $152 million last year.
Posted at 11:59 am
This amount, listed in the documents filed with the exchange authorities, includes a cash bonus of 53 million, as well as a payment of 2.6 million 8, which is a percentage of the profits made on transactions. Senvest Capital’s bet on GameStop — a video game retailer — turned out to be very lucrative.
The press reported last year that Richard Mashaal’s New York hedge fund, Senvest Management, made over $900 million in profit from the sale of its stake in GameStop.
This retailer was in the spotlight when hedge funds decided to short the company’s shares. This practice involves borrowing a stock in the belief that its value will decline in hopes of later buying it back at a lower price.
The scenario was very different. Retail investors have played spoilsports by buying the title from GameStop in a concerted effort to help it soar, though the company hadn’t announced anything in particular.
On the New York Stock Exchange, the stock, which was trading at around $17.25 in early 2021, had peaked at $483 a few weeks later (January 28). Wall Street hedge funds, forced to cut losses, lost millions. Small investors also lost money due to the high volatility.
“We thought GameStop was the most shorted stock in the US market, and in our entire career we’ve never seen such keen interest in shorting a particular title.” Senvest, in its most recent annual report.
On Wednesday, GameStop’s stock is trading around $138 on Wall Street.
Senvest Capital has real estate assets but its main activity is to be a holding company. Senvest Capital invests primarily through its New York hedge fund Senvest Management, also led by Richard Mashaal, and private equity funds.
- 860 million
- This is the estimated market value of Senvest Capital, whose shares are traded on the Toronto Stock Exchange.