Last spring, when GameStop Corp. was just a struggling videogame retailer and before Reddit took it to the moon, two small money managers teamed up in an audacious bid to shake up its board of directors.
They thought the stock was worth a few more dollars.
They won, and then things got wild. Shares have zoomed from $4 all the way to above $400, and John Broderick’s Permit Capital and Kurt Wolf’s Hestia Capital have each made probably more than $100 million, at least in paper gains, according to regulatory filings. The duo risked their reputations on the future of GameStop and in doing so helped plant the seeds that turned into a stock rally that has captivated Wall Street.
“It’s sort of like after the Super Bowl when they ask someone how it feels and they say it doesn’t feel real,” said Mr. Broderick. “I guess I can go to Disney World.”
Their realized profits aren’t quite equal to each other’s right now, their stock-picking fairy tale colliding with the reality of corporate bylaws.
This content was originally published here.