Citron Research covers short in GameStop By Investing.com

By Samuel Indyk

Investing.com – Activist investor and short seller Andrew Left said his firm Citron Research has covered the majority of their short position in GameStop Corp (NYSE:GME) in the $90s at a loss. In pre-market at 12:35GMT, shares are trading higher by 65% at $246.

Left made the announcement in a video posted to YouTube where he acknowledged that going forward, his firm will “become more judicious when shorting stocks.”  However, Left went on to say that the short-selling industry is not finished, just that when shorting stocks, companies will have to me specific. See the full video from Andrew Left below. 

Melvin Capital

Left’s firm was not the first to close its short position. CNBC had earlier reported that the hedge fund targeted by the WallStreetBets community Melvin Capital had also closed out of its GameStop short position late on Tuesday, after taking a large loss. The size of the loss was not confirmed.

Citron Research

Andrew Left made his name as a short seller in the early 2000s but one of his most famous shorts was Valeant Pharmaceuticals in 2015, at the time a hedge fund darling. Citron Research released a report saying the company was involved in inflating drug sales and in the following months shares crashed 90% from their peak, leaving many hedge funds with huge losses. The company later changed its name to Bausch Health Companies Inc (NYSE:BHC).