Benzinga - by Chris Katje, Benzinga Staff Writer.
Citron Research founder and short seller Andrew Left famously bet against GameStop Corporation (NYSE:GME) in 2021. The short seller told Benzinga Thursday he is once again betting against GameStop with the recent increase in the share price.
What Happened: Left was a central player in the short squeeze of GameStop shares back in 2021.
The Citron Research founder told Benzinga that he went short GameStop shares this week.
"Of course," Left said. "It's always a good opportunity."
Left said the approach to shorting a stock like GameStop has changed, emphasizing the need to do it judiciously. He added that investors can also manage their risk through options.
Left said he didn’t believe GameStop shares would reach $75, equivalent to $300 pre-split in 2021. "I would have never thought it would see ($75) again."
Left said his bets against GameStop this week were smaller positions. "By no means, no trader out there would be laying into GameStop."
He also echoed that while investors remember GameStop shares hitting highs of over $400 in 2021 and then falling, the shares rallied again back to $400.
Left said that GameStop shares are still trading higher than when he first spoke with Benzinga in 2021, before the stock’s surge.
"Are the business fundamentals any better? Even Ryan Cohen has said, okay, this story is over."
Related Link: Who Is Roaring Kitty? Why Does His Return To Social Media Matter For GameStop Stock?
Why It's Important: In a 2023 interview, Left shared that he lost money on his GameStop trade. He also said that exiting his short position while shares were at $92 was one of the best trades he's made in his life.
While some hedge funds like Melvin Capital lost big from the GameStop short squeeze, Left said the people behind them are still rich today.
"The big guys are still doing okay," Left said.
Left referenced Melvin Capital founder Gabe Plotkin owning an NBA team (Charlotte Hornets), Point 72 founder Steve Cohen owning a MLB team (New York Mets) and Citadel LLC founder Ken Griffin owning half of Miami.
"I don't know what boo boo kitty owns," Left said with a laugh, commenting on Keith Gill, aka Roaring Kitty.
Left said short sellers are now more cautious and understand the gamification of the market. For years, hedge funds have known how to trade short squeezes, Left added.
While Left bet against GameStop this week, he's doing less short reports now, saying that the market got crowded, and the risk reward isn't worth it.
"The rewards aren't there anymore. There's so much against you."
GME Price Action: GameStop shares are down 21% to $31.42 on Thursday, versus a 52-week trading range of $9.95 to $64.83. New 52-week highs were set on both Monday and Tuesday earlier in the trading week.
Read Next: 5 Ways The GameStop, Meme Stocks Rally Could Fizzle: Stock Offerings, Boredom And More
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