Griffin Says ‘There’s No Doubt’ Short Selling Will Be Curbed
(Bloomberg) -- Citadel founder Ken Griffin said the Reddit-fueled market turmoil last month will diminish the amount of short selling by hedge funds.
“There’s no doubt in the foreseeable future the amount of short selling will be reduced by the events of the last couple of weeks,” Griffin said Friday in an interview with CNBC.
A day earlier, Griffin testified before the House Financial Services Committee along with the heads of Reddit, Robinhood Markets and Melvin Capital Management. Robinhood’s decision to limit trading in shares of GameStop Corp. and other stocks angered retail investors and prompted the hearing.
Citadel, Griffin and his partners invested $2 billion in Melvin, which incurred heavy losses wagering against GameStop and other companies. Citadel’s hedge fund business has about $34 billion under management.
©2021 Bloomberg L.P.