I Hope Steve Cohen's Mets Lose Every Game They Play

It's remarkable how fast you can go from a hero to a zero. How quickly you can go from the savior of a downtrodden franchise devastated by the Wilpon family for years to public enemy #1. Steve Cohen has been able to achieve this in record time thanks to of all things Gamestop's stock and help from some friends. Let's do a little background on Steve Cohen shall we.

As a young trader on Wall Street, Steve started doing pretty well for himself right away. The SEC was suspicious of him early on, but I'm willing to give him the benefit of the doubt early on. The SEC always likes to stick their noses where they don't usually belong.

Good ole American Dream story right here. Graduate college, start off on the bottom floor and make enough money to start your own company that becomes a huge success.

I'm starting to notice a trend here. Maybe he's not such a bad guy though.

In 2014 Cohen founded his new hedge fun Point72 Capitol. Point72 manages nearly $19 billion in assets. As of this past week, the fund has lost upwards of 15% of its assets. Thats approximately $2.85 billion by my calculations. The losses are a result of the fund's investments in another hedge fund called Melvin Capital. Melvin Capitol was founded by a close buddy of Cohen's named Steve Plotkin. Steve is a minority owner of the Charlotte Hornets. Melvin Capital lost 30% of it's assets thanks to it's short positions on Gamestop (GME).

For those of you who do not know what happened with Gamestop in the past week or so I'll explain it as best I can. The rest of you can skip this and keep going below if you'd like. Gamestop is a company that's not in the best condition and many people expect it to go under in the coming years. The hedge funds agree with this sentiment and put in their short positions on GME. To a tune of 140% of the stock in some cases. To short a stock means you make money when the price goes down. You do this by borrowing shares of the stock from other people, selling it at it's current price, and then buying the shares back when the price is lower. You profit from the difference. Often times a stock will go to zero and the shorters wouldn't even have to buy the shares back they just keep the profit. What happened with GME however is a bunch of people on Reddit and Discord caught wind of the massive short positions these hedge funds had on GME and decided they were going to buy shares of the stock driving the price up, therefore causing the funds to lose money on their shorts positions... a lot of money. Nearly $20 billion on GME alone.

What a wild ride. Hopefully some of you got into GME in time and made some money. Naturally this leads to the billionaire hedge fund managers crying foul and price manipulation, even though they routinely engage in this behavior when they short a stock and go on national TV talking about how bad a company is, driving the company's price into the ground and making the funds massive amounts of profit.

So why does this all make Cohen a bad guy? Cohen likes to put out this image that he's just an innocent guy who's just trying to make a living and looks out for the little guy. But when push came to shove what did Cohen do? He teams up with his friend Ken Griffin (CEO of Citadel), to bail out his buddy Steve's Melvin Capital which is in deep trouble with a $2.75 billion investment. Citadel which is a majority investor in the trading app Robinhood then has Robinhood freeze all trading on GME, allowing the funds to reassess their positions. They are now limiting individual's buying power to 5 shares. They did however allow users to sell as much of GME as they wanted, artificially driving the price of the stock down and giving some relief to the hedge funds. Cohen and his buddies were losing at their own game, so they got mad, turned the game off, and changed the rules.

The game is only rigged and the rules changed when the wrong people are winning. Because of this I hope Cohen has to either sell the team to recover his losses, or the Mets need to lose every game they play under the ownership of Steve Cohen. The Mets continue to be one of the most dysfunctional organizations in all of professional sports. A truly cursed franchise. In just 2 years they have had to fire a Manager and GM before they played a single game and now may have to find a new owner just months after he purchased the team. Sorry Mets fans, maybe one day your organization will be normal and semi functional.