Wall Street veteran Carl Icahn is reported to have been shorting GameStop Corp (NYSE:GME) since 2021.
He currently holds a “sizable” short position against the video games retailer, according to Bloomberg, which cited people familiar with the matter.
Icahn, one of Wall Street’s most successful investors with a net worth of US$17.7bn, was reported to have built the short position the height of the stock's 'meme stock' popularity during the early part of 2021, when it peaked at US$483 per share last January.
Since then the company has carried out a four-for-one share split, meaning its all-time high was nearer US$120.
GameStop became a symbol to many of the meme stock frenzy during the pandemic, where large groups of individual investors colluded via social media to all buy shares in companies where institutional investors had large short positions.
By short-selling, an investor or fund borrows assets and sells them in the market before buying them back for less, making a profit if they buy them back cheaper.
Icahn’s bet has proven a fruitful one over the past year - apart from perhaps a sharp rally in March - with the share price having dropped by over 50%, helped by a 9% decline on Monday alone.
On Tuesday, GameStop shares were up 4.45% to US$26.07.