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Hedge fund lobby scolds those ‘clapping with glee’ at losers in GameStop frenzy

‘What is dangerous, amid this trading frenzy, is that retail investors have been chasing prices so far above any sane valuation and that many will end up nursing losses’

The Alternative Investment Management Association wrote in a letter to members that retail investors may get hurt by the GameStop mania
The Alternative Investment Management Association wrote in a letter to members that retail investors may get hurt by the GameStop mania Photo: Yuriko Nakao/Getty Images

The chief executive of the London-based body that represents the interests of the global hedge fund industry warns it will be retail investors who will be nursing heavy losses once the dust has settled in the GameStop frenzy.

Jack Inglis, who oversees the Alternative Investment Management Association — whose members manage more than $2tn collectively — wrote in a letter to members that “some retail investors who have been late to this party are very likely to end up getting hurt”.

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