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The fund that made $700 million on GameStop knew it was time to sell after an Elon Musk tweet

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The hedge fund that got it all won the GameStop trade just about perfectly right last year — buying it under $10 and selling when the meme stock peaked.

It used a sell signal. A tweet by Elon Musk.

This is how Senvest Management, 2021’s best-performing hedge fund, was able to make $700,000,000 in GameStop profit and increase its annual return by over 85%. It was the company’s best trade in all of its 25-year history.

“His piling on with that tweet for us was…we all looked at each other, and thought how do you top that?,” said Richard Mashaal, Senvest Management’s founder, CEO and co-CIO. That was the peak moment for us and so we exited all other positions. 

Tesla CEO tweets “Gamestonk!! The bell rang on January 26th. GameStop reached $347.51 an apiece the following day. Senvest then lost its stake.

Just days before 2021, the meme stock saga began when two retail traders joined Reddit’s WallStreetBets forum to try and raise their bids. GameStopThe shares of’s, which were heavily shorted by hedge funds. The trigger for retail purchasing massive short covering among hedge funds that fueled the rally even further.

Mashaal bought shares of GameStop stock in September 2020 amid high short interest and a host of sell ratings from analysts.

Mashaal explained that “it’s a classic counterrian play for us.” GameStop was able to offer a variety of buy recommendations (Wall Street didn’t have many), and GameStop had lots. Then, there was the short interest, that was more than 100% of shares traded …. Both of these indicators would indicate that the stock was not in favor.

Senvest was a notable exception in hedge fund investing, where many players were burned by an unprecedented short squeeze.

Melvin Capital was among the worst losers in the meme stock mania. Citadel, Point72 and Melvin Capital were forced by its severe losses to invest close to $3 billion in Gabe Plotkin’s hedge-fund to stabilize their finances.  Melvin suffered a 39% lossIn 2021, after the GameStop quick squeeze.

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