New York, Jan 29 (EFE) .- Citron Research, a well-known bearish analysis firm that has been at the center of the controversy over the GameStop phenomenon, announced this Friday that it will change strategy after 20 years investigating “selling opportunities short “and will focus on delivering long-term benefits for retail investors.
“After 20 years, we have realized something: when we started, Citron was supposed to be against the ‘establishment’. We really have become the ‘establishment’, explained in a YouTube video its founder, Andrew Left, who acknowledged that it has “lost focus” and assured that it will not publish more “short selling” reports.
Left’s decision comes after several days of madness on Wall Street, in which small investors coordinated from social networks such as Reddit have “crushed” the “short” options of large investment funds that were betting to profit from stock falls like the one at the GameStop video game store.
Citron Research had indicated in one of its reports that the financially distressed GameStop stock was set to fall to $ 20, providing a quick profit opportunity for bears, but following a dizzying rise from retailers to more. of 400 dollars this week decided to close that position and give up after losses of several billion.
“If they choose to buy GameStop (…) it is their business, a lot has been written. On Monday we will start with another story. We want to breathe, smile, we are excited for the next 10 or 20 years of Citron; we hope to put our experience and above all some kindness back in this market, “the analyst noted.
Citron has become the target of ire from “redditors” alongside mutual funds like Melvin Capital, which has suffered heavy losses from its short exposure to GameStop in what is known as a “short squeeze”, a rise after being forced to buy securities to protect their failed bearish bet, further raising the price.
Left made a name for himself by publishing reports with short selling opportunities for what he considered excessive valuations or possible fraud, but according to his statement, last year the fund he manages had very good results betting on companies with long-term growth and more than doubled your investment.
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